We believe Boeing stock (NYSE: BA) is a better pick than its sector peer, Raytheon Technologies stock (NYSE: RTX), given its better prospects. Both stocks trade at the same valuation multiple of around 2x trailing revenues. While Raytheon is more profitable and has demonstrated better revenue growth over the recent years, Boeing’s
BA
Looking at stock returns, Boeing has outperformed with its 14% returns this year, vis-à-vis -2% returns for Raytheon and 12% gains for the broader S&P500 index. There is more to the comparison, and in the sections below, we discuss why we believe that BA will offer better returns than RTX in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in this analysis.
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