MS vs RTX: Which Is the Better Buy?
Side-by-side comparison of Morgan Stanley and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Morgan Stanley · Financial Services
$189.30
-30.5% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
RTX has more upside to fair value
(-21.3%).
MS trades at a lower forward P/E
(16.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MS |
RTX |
| Current Price |
$189.30 |
$172.90 |
| Fair Value Estimate |
$131.49 |
$136.05 |
| Upside to Fair Value |
-30.5%
|
-21.3%
|
| Market Cap |
$300.6B |
$232.8B |
| Forward P/E |
16.4x
|
32.1x
|
| EV / EBITDA |
24.4x
|
19.2x
|
| Price / Sales |
2.5x
|
2.6x
|
| Price / FCF |
-16.8x
|
27.9x
|
| Revenue Growth YoY |
+18.8%
|
+8.7%
|
| Gross Margin |
58.0%
|
20.2%
|
| Operating Margin |
19.5%
|
10.4%
|
| Return on Equity |
16.7%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
3.59%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Morgan Stanley is a leading global financial services firm operating in Institutional Securities, Wealth Management, and Investment Management. The company benefits from a durable competitive moat supported by its systemically important status, diversified revenue streams, and strong management with a 36-year veteran CEO. Despite solid fundamentals including 14.2% revenue growth in 2025 and 16.7%…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
MS |
RTX |
| Zone Low |
$98.62 |
$102.04 |
| Zone High |
$111.77 |
$115.64 |
| In Buy Zone? |
No
|
No
|