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FERG vs RTX

FERG
Ferguson Enterprises Inc.
NEUTRAL
Price
$263.59
Market Cap
$52.92B
Sector
Industrials
AI Confidence
80%
RTX
RTX Corporation
NEUTRAL
Price
$195.79
Market Cap
$263.53B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
FERG
25.97
RTX
39.39
Forward P/E
FERG
21.31
RTX
26.01
P/B Ratio
FERG
8.78
RTX
4.03
P/S Ratio
FERG
1.72
RTX
2.97
EV/EBITDA
FERG
18.8
RTX
20.17

Profitability

Gross Margin
FERG
30.62%
RTX
20.08%
Operating Margin
FERG
7.89%
RTX
11.02%
Profit Margin
FERG
6.12%
RTX
7.6%
ROE
FERG
--
RTX
10.95%
ROA
FERG
--
RTX
3.88%

Growth

Revenue Growth
FERG
3.6%
RTX
12.1%
Earnings Growth
FERG
11.7%
RTX
8.3%

Financial Health

Debt/Equity
FERG
0.92
RTX
0.6
Current Ratio
FERG
1.86
RTX
1.03
Quick Ratio
FERG
0.86
RTX
0.67

Dividends

Dividend Yield
FERG
1.35%
RTX
1.39%
Payout Ratio
FERG
33.27%
RTX
53.83%

AI Verdict

FERG NEUTRAL

FERG presents a dichotomy between strong operational execution and stretched valuation. The Piotroski F-Score of 4/9 indicates stable but not robust financial health, while the Graham Number of $82.81 suggests the stock is trading at a significant defensive premium. Despite a strong track record of earnings beats and a sustainable dividend payout, the bearish technical trend (10/100) and weak insider sentiment (40/100) suggest a potential near-term ceiling. The stock is currently trading slightly above its growth-based intrinsic value of $249.18.

Strengths
Consistent earnings beat track record (3/4 last 4 quarters with 14.68% avg surprise)
Sustainable dividend profile with a low payout ratio of 33.27%
Strong 1-year price appreciation of 57.9%
Risks
Significant valuation gap compared to Graham Number ($82.81 vs $263.59)
Very high Price-to-Book ratio (8.78) indicating high premium over assets
Sluggish year-over-year revenue growth of only 3.60%
RTX NEUTRAL

RTX exhibits stable financial health with a Piotroski F-Score of 5/9, yet it is trading at a severe premium compared to its Graham Number ($73.73) and Intrinsic Value ($96.67). While the company boasts an exceptional track record of earnings beats over 25 quarters and solid revenue growth, the valuation is stretched with a PEG ratio of 2.75. This fundamental overvaluation is compounded by bearish insider sentiment and a weak technical trend, suggesting that while the business is strong, the stock price is currently decoupled from its deterministic value.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong revenue growth of 12.10% YoY
Conservative Debt/Equity ratio of 0.60
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish insider activity with $32.68M in sales by top executives
High PEG ratio (2.75) indicating price growth exceeds earnings growth

Compare Another Pair

FERG vs RTX: Head-to-Head Comparison

This page compares Ferguson Enterprises Inc. (FERG) 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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