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ADT vs RTX

ADT
ADT Inc.
NEUTRAL
Price
$8.03
Market Cap
$6.59B
Sector
Industrials
AI Confidence
65%
RTX
RTX Corporation
BEARISH
Price
$194.81
Market Cap
$262.25B
Sector
Industrials
AI Confidence
75%

Valuation

P/E Ratio
ADT
11.31
RTX
39.28
Forward P/E
ADT
8.49
RTX
25.91
P/B Ratio
ADT
1.78
RTX
4.01
P/S Ratio
ADT
1.29
RTX
2.96
EV/EBITDA
ADT
5.38
RTX
19.91

Profitability

Gross Margin
ADT
80.92%
RTX
20.08%
Operating Margin
ADT
25.65%
RTX
11.02%
Profit Margin
ADT
12.53%
RTX
7.6%
ROE
ADT
17.24%
RTX
10.95%
ROA
ADT
5.05%
RTX
3.88%

Growth

Revenue Growth
ADT
4.4%
RTX
12.1%
Earnings Growth
ADT
24.7%
RTX
8.3%

Financial Health

Debt/Equity
ADT
2.16
RTX
0.6
Current Ratio
ADT
0.67
RTX
1.03
Quick Ratio
ADT
0.37
RTX
0.67

Dividends

Dividend Yield
ADT
2.68%
RTX
1.41%
Payout Ratio
ADT
30.14%
RTX
53.83%

AI Verdict

ADT NEUTRAL

ADT's Advanced Deterministic Scorecard reveals a mixed profile: the Piotroski F-Score of 4/9 indicates borderline financial health, while the absence of an Altman Z-Score prevents a clear distress risk assessment. Despite solid profitability metrics—such as a 25.65% operating margin and 17.24% ROE—concerns persist due to weak liquidity (Current Ratio: 0.67, Quick Ratio: 0.37) and high leverage (Debt/Equity: 2.16). The stock trades below the analyst target price of $9.48 and near the Graham Number of $8.48, suggesting modest value, but growth is moderate and insider sentiment is neutral. Technical trend is bearish, and recent price performance shows weakness over the past six months despite a strong 1-year earnings surprise record.

Strengths
Strong operating profitability with 25.65% operating margin and 80.92% gross margin
High return on equity (17.24%), outperforming sector average of 7.77%
Earnings growth accelerating (YoY: 24.70%, Q/Q: 14.10%) with consistent positive surprises in recent quarters
Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly in liquidity and leverage
Very weak liquidity position: Current Ratio (0.67) and Quick Ratio (0.37) below 1.0 signal potential short-term solvency risk
High Debt/Equity ratio of 2.16 exceeds sector average (1.55), increasing financial risk
RTX BEARISH

RTX shows bearish fundamentals based on deterministic rules. Financial strength is stable (F-Score 5/9). Concerns include weak profitability or high valuation.

Strengths
Company has established market presence
Risks
High valuation with P/E of 39.3
Premium vs Graham Number ($73.65)

Compare Another Pair

ADT vs RTX: Head-to-Head Comparison

This page compares ADT Inc. (ADT) and RTX Corporation (RTX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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