Which Is a Better Investment, General Dynamics Corporation or Raytheon Technologies Corp Stock?

By AAII Staff
September 16, 2026
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Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in RTX Corporation or General Dynamics Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how RTX Corporation and General Dynamics Corporation compare based on key financial metrics to determine which better meets your investment needs.

About RTX Corporation and General Dynamics Corporation

RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support, customer support and custom completion services, modifications, upgrades, and lifecycle sustainment support services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, energetics and munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, and armored vehicles; and offers modernization programs, support and sustainment services, and development programs. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud services, cybersecurity, network modernization, artificial intelligence; machine learning; application development, high-performance computing, and 5G and advanced communications services; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

Latest Aerospace & Defense and RTX Corporation, General Dynamics Corporation Stock News

As of September 15, 2026, RTX Corporation had a $263.5 billion market capitalization, compared to the Aerospace & Defense median of $4.4 million. RTX Corporation’s stock is up 6.6% in 2026, down 1% in the previous five trading days and up 25.44% in the past year.

Currently, RTX Corporation’s price-earnings ratio is 34.4. RTX Corporation’s trailing 12-month revenue is $93.5 billion with a 8.3% net profit margin. Year-over-year quarterly sales growth most recently was 14.5%. Analysts expect adjusted earnings to reach $7.243 per share for the current fiscal year. RTX Corporation currently has a 1.5% dividend yield.

As of September 15, 2026, General Dynamics Corporation had a $96.9 billion market cap, putting it in the 97th percentile of all stocks. General Dynamics Corporation’s stock is up 6.5% in 2026, up 1.7% in the previous five trading days and up 9.95% in the past year.

Currently, General Dynamics Corporation’s price-earnings ratio is 21.9. General Dynamics Corporation’s trailing 12-month revenue is $54.9 billion with a 8.2% net profit margin. Year-over-year quarterly sales growth most recently was 8.1%. Analysts expect adjusted earnings to reach $17.001 per share for the current fiscal year. General Dynamics Corporation currently has a 1.8% dividend yield.

How We Compare RTX Corporation and General Dynamics Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at RTX Corporation and General Dynamics Corporation’s stock grades to see how they measure up against one another.

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RTX Corporation and General Dynamics Corporation Stock Value Grades

Company Ticker Value
RTX Corporation RTX D
General Dynamics Corporation GD D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

RTX Corporation has a Value Score of 23, which is Expensive. General Dynamics Corporation has a Value Score of 39, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither RTX Corporation or General Dynamics Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if RTX Corporation or General Dynamics Corporation is the better investment when it comes to value.

RTX Corporation and General Dynamics Corporation Growth Grades

Company Ticker Growth
RTX Corporation RTX A
General Dynamics Corporation GD A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

RTX Corporation has a Growth Score of 100, which is Very Strong. General Dynamics Corporation has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both RTX Corporation and General Dynamics Corporation have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

RTX Corporation and General Dynamics Corporation’s Momentum Grades

Company Ticker Momentum
RTX Corporation RTX B
General Dynamics Corporation GD C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

RTX Corporation has a Momentum Score of 64, which is Strong. General Dynamics Corporation has a Momentum Score of 49, which is Average.

The Momentum Grade Winner: RTX Corporation

As you can clearly see from the Momentum Grade breakdown above, RTX Corporation is considered to have stronger momentum compared to General Dynamics Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, RTX Corporation could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other RTX Corporation and General Dynamics Corporation Grades

In addition to Momentum, Value and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether RTX Corporation and General Dynamics Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, RTX Corporation or General Dynamics Corporation Stock?

Overall, RTX Corporation stock has a Value Score of 23, Growth Score of 100 and Momentum Score of 64.

General Dynamics Corporation stock has a Value Score of 39, Growth Score of 100 and Momentum Score of 49.

Comparing RTX Corporation and General Dynamics Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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