MSFT vs RTX: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Microsoft Corporation · Technology
$429.25
+23.0% upside to fair value
Grade B
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
MSFT has more upside to fair value
(+23.0%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
RTX |
| Current Price |
$429.25 |
$172.90 |
| Fair Value Estimate |
$527.78 |
$136.05 |
| Upside to Fair Value |
+23.0%
|
-21.3%
|
| Market Cap |
$3,187.4B |
$232.8B |
| Forward P/E |
26.8x
|
32.1x
|
| EV / EBITDA |
17.2x
|
19.2x
|
| Price / Sales |
10.4x
|
2.6x
|
| Price / FCF |
41.2x
|
27.9x
|
| Revenue Growth YoY |
+16.7%
|
+8.7%
|
| Gross Margin |
68.6%
|
20.2%
|
| Operating Margin |
46.7%
|
10.4%
|
| Return on Equity |
33.6%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.43%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
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 |
MSFT |
RTX |
| Zone Low |
$395.83 |
$102.04 |
| Zone High |
$448.61 |
$115.64 |
| In Buy Zone? |
Yes
|
No
|