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GGG vs RTX

GGG
Graco Inc.
BEARISH
Price
$80.54
Market Cap
$13.37B
Sector
Industrials
AI Confidence
85%
RTX
RTX Corporation
NEUTRAL
Price
$195.79
Market Cap
$263.53B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GGG
26.32
RTX
39.39
Forward P/E
GGG
23.83
RTX
26.01
P/B Ratio
GGG
4.87
RTX
4.03
P/S Ratio
GGG
5.94
RTX
2.97
EV/EBITDA
GGG
17.63
RTX
20.17

Profitability

Gross Margin
GGG
52.31%
RTX
20.08%
Operating Margin
GGG
25.51%
RTX
11.02%
Profit Margin
GGG
22.96%
RTX
7.6%
ROE
GGG
19.78%
RTX
10.95%
ROA
GGG
12.01%
RTX
3.88%

Growth

Revenue Growth
GGG
2.2%
RTX
12.1%
Earnings Growth
GGG
-2.8%
RTX
8.3%

Financial Health

Debt/Equity
GGG
0.02
RTX
0.6
Current Ratio
GGG
3.56
RTX
1.03
Quick Ratio
GGG
2.5
RTX
0.67

Dividends

Dividend Yield
GGG
1.47%
RTX
1.39%
Payout Ratio
GGG
36.6%
RTX
53.83%

AI Verdict

GGG BEARISH

Graco Inc. (GGG) exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.02). However, the stock is severely overvalued, trading at $80.54 despite a Graham Number of $33.74 and an Intrinsic Value of $21.42. Growth has stalled with negative YoY earnings growth (-2.80%) and a high PEG ratio of 2.52, indicating the price is not supported by current fundamentals. Bearish insider activity and a 0/100 technical trend further signal a lack of confidence in near-term upside.

Strengths
Exceptional balance sheet with near-zero debt (Debt/Equity 0.02)
Strong profitability margins (Gross Margin 52.31%, Operating Margin 25.51%)
High liquidity with a Current Ratio of 3.56
Risks
Severe valuation gap between current price and deterministic fair value models
Negative earnings growth trend (YoY -2.80%, Q/Q -4.50%)
Consistent earnings misses (only 1 of last 4 quarters beat estimates)
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

GGG vs RTX: Head-to-Head Comparison

This page compares Graco Inc. (GGG) 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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