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 2026-06-20.
Morgan Stanley · Financial Services
$223.17
-1802.9% upside to fair value
Grade D
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
RTX has more upside to fair value
(-25.2%).
MS trades at a lower forward P/E
(20.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MS |
RTX |
| Current Price |
$223.17 |
$185.60 |
| Fair Value Estimate |
$-3,800.42 |
$138.81 |
| Upside to Fair Value |
-1802.9%
|
-25.2%
|
| Market Cap |
$352.0B |
$249.9B |
| Forward P/E |
20.1x
|
34.3x
|
| EV / EBITDA |
21.9x
|
18.3x
|
| Price / Sales |
2.9x
|
2.8x
|
| Price / FCF |
-334.6x
|
29.9x
|
| Revenue Growth YoY |
+18.8%
|
+8.7%
|
| Gross Margin |
58.0%
|
20.2%
|
| Operating Margin |
19.5%
|
10.9%
|
| Return on Equity |
16.4%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
3.34%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Morgan Stanley is a leading global financial services firm with a strong focus on wealth management and institutional securities, generating $70.6 billion in net revenues in 2025. The company benefits from a durable competitive moat driven by its fee-based wealth franchise, strong profitability with a 15.1% net margin, and steady capital returns. However, the stock is significantly overvalued, tr…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
MS |
RTX |
| Zone Low |
$-2,850.32 |
$104.11 |
| Zone High |
$-3,230.36 |
$117.99 |
| In Buy Zone? |
No
|
No
|