Raytheon Company (RTN) and Its Competitors Financial Results Comparison

We are contrasting Raytheon Company (NYSE:RTN) and its rivals on their institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation. They are Aerospace/Defense Products & Services companies, competing one another.

Insider & Institutional Ownership

Raytheon Company has 75.6% of its shares held by institutional investors versus an average of 68.12% institutional ownership for its rivals. 0.1% of Raytheon Company shares are held by company insiders. Comparatively, 6.25% of all Aerospace/Defense Products & Services companies shares are held by company insiders.

Profitability

Table 1 has Raytheon Company and its competitors’ return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
Raytheon Company 10.75% 23.50% 8.10%
Industry Average 17.78% 18.01% 7.34%

Earnings & Valuation

In next table we are contrasting Raytheon Company and its competitors’ net profit, valuation and top-line revenue.

Net Income Gross Revenue Price/Earnings Ratio
Raytheon Company 2.91B 27.06B 18.67
Industry Average 582.15M 3.27B 28.37

Raytheon Company has lower P/E Ratio, but higher revenue than its rivals. The company has a lower price-to-earnings ratio which is currently more affordable in compare to its competitors.

Analyst Ratings

Table 3 shows summary of current ratings for Raytheon Company and its competitors.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Raytheon Company 0 1 5 2.83
Industry Average 1.25 1.86 2.85 2.45

With average price target of $212.67, Raytheon Company has a potential upside of 19.59%. The rivals have a potential upside of 62.17%. The analysts’ opionion based on the data shown earlier is that Raytheon Company is looking more favorable than its competitors.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Raytheon Company and its rivals.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Raytheon Company -2.36% -8.6% -14.04% -19.45% -8.02% -8.86%
Industry Average 5.65% 3.92% 30.89% 20.08% 32.80% 27.60%

For the past year Raytheon Company had bearish trend while Raytheon Company’s rivals had bullish trend.

Liquidity

The Current Ratio and a Quick Ratio of Raytheon Company are 1.5 and 1.4. Competitively, Raytheon Company’s rivals have 2.93 and 2.12 for Current and Quick Ratio. Raytheon Company’s peers have better ability to pay short and long-term obligations than Raytheon Company.

Risk & Volatility

Raytheon Company is 16.00% less volatile than S&P 500 because the company has a beta of 0.84. Competitively, Raytheon Company’s rivals are 3.35% less volatile than S&P 500, because of the 0.97 beta.

Dividends

The annual dividend that Raytheon Company pay is $3.47 per share with a dividend yield of 1.97%. On the other side Raytheon Company’s competitors have dividend yield of 1.70%.

Summary

Raytheon Company’s peers show that they’re better in 6 of the 7 indicators compared to the company itself.

Raytheon Company develops technologically integrated products, services, and solutions worldwide. It operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint. The IDS segment provides integrated air and missile defense; land and sea-based radar solutions; command, control, communications, computers, cyber, and intelligence solutions; and naval combat and ship electronic systems. The IIS segment offers a range of technical and professional services, such as intelligence, surveillance and reconnaissance, navigation, DoD space and weather, cybersecurity, analytics, training, logistics, mission support, engineering, and automation and sustainment solutions; and air traffic management systems. The MS segment develops and supports a range of weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors, and combat sensor solutions. The SAS segment provides electro-optical/infrared sensors, airborne radars for surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems, processors, electronic warfare systems, and communication and space-qualified systems for civil and military applications. The Forcepoint segment develops cyber security products comprising insider threat solutions, data loss prevention, firewall technology, cross domain transfer, and cloud and on premise Web and email security products. The company serves the U.S. Department of Defense, the U.S. Intelligence Community, the U.S. Armed Forces, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, Department of Homeland Security, the National Aeronautics and Space Administration, and other international customers. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.