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AOS vs RTX

AOS
A. O. Smith Corporation
NEUTRAL
Price
$72.46
Market Cap
$10.15B
Sector
Industrials
AI Confidence
75%
RTX
RTX Corporation
BEARISH
Price
$194.81
Market Cap
$262.25B
Sector
Industrials
AI Confidence
75%

Valuation

P/E Ratio
AOS
19.69
RTX
39.28
Forward P/E
AOS
17.96
RTX
25.91
P/B Ratio
AOS
5.47
RTX
4.01
P/S Ratio
AOS
2.65
RTX
2.96
EV/EBITDA
AOS
12.93
RTX
19.91

Profitability

Gross Margin
AOS
38.51%
RTX
20.08%
Operating Margin
AOS
18.63%
RTX
11.02%
Profit Margin
AOS
13.85%
RTX
7.6%
ROE
AOS
28.21%
RTX
10.95%
ROA
AOS
13.88%
RTX
3.88%

Growth

Revenue Growth
AOS
4.4%
RTX
12.1%
Earnings Growth
AOS
14.6%
RTX
8.3%

Financial Health

Debt/Equity
AOS
0.12
RTX
0.6
Current Ratio
AOS
1.54
RTX
1.03
Quick Ratio
AOS
0.89
RTX
0.67

Dividends

Dividend Yield
AOS
1.92%
RTX
1.41%
Payout Ratio
AOS
36.66%
RTX
53.83%

AI Verdict

AOS NEUTRAL

AOS exhibits mixed financial health with a weak Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score for distress risk assessment. Despite solid profitability metrics like a 28.21% ROE and 18.63% operating margin, the company faces headwinds from declining Q/Q EPS growth (-12.1%) and bearish insider activity. Valuation is stretched relative to Graham's defensive standard ($33.12) but aligns with growth-based intrinsic value ($106.35), while trading below analyst target ($78.27). The stock shows resilience in earnings beats over time, though recent deceleration and technical bearishness temper optimism.

Strengths
Strong return on equity (28.21%) well above sector average (6.07%)
Low debt/equity ratio (0.12) indicating conservative capital structure
Consistent earnings beat history with 3 out of last 4 quarters exceeding estimates
Risks
Weak Piotroski F-Score (4/9) signaling suboptimal financial health
Negative Q/Q EPS growth (-12.1%) despite positive YoY growth
Bearish insider sentiment with $3M in net insider selling over last 6 months
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

AOS vs RTX: Head-to-Head Comparison

This page compares A. O. Smith Corporation (AOS) 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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