BA vs. RTX: Which Aerospace-Defense Stock Is a Smarter Option?

Geopolitical instability across the globe has been a major catalyst for the growth of defense giants such as Boeing BA and RTX Corporation RTX. In response to rising tensions—particularly recent conflicts in Europe and the Middle East—the United States and its allies have significantly increased their defense budgets.

This increase in budget represents a strategic move toward modernization and technical superiority rather than just boosting military capability. As a result, governments are allocating a greater share of their budgets to initiatives that enhance overall military readiness, invest in cutting-edge weapons platforms, modernize legacy systems, and accelerate the development of next-generation aircraft. These initiatives are creating favorable conditions for leading defense contractors whose capabilities closely align with long-term security objectives.

Both companies have big business segments built around military aircraft, defense systems, and government contracts. Their financial performance is closely linked to defense budgets and spending trends.

The Standpoint of BA

Boeing’s Defense, Space & Security (“BDS”) business is positioned for sustained growth as U.S. military and space-related expenditures continue to rise. The proposed fiscal 2026 defense budget under the Trump administration calls for a sizable 13.4% increase, raising the total defense spending to approximately $1.01 trillion, with a strong emphasis on advanced aircraft and space initiatives. The proposal includes $3.1 billion to support ongoing production of the F-15EX Eagle II fighter jet, along with $3.5 billion earmarked for the Air Force’s next-generation F-47 air dominance program. In addition, the Space Force is set to receive a substantial $40 billion allocation. Together, these funding priorities provide a favorable backdrop for Boeing’s BDS segment and reinforce its long-term growth prospects.

The company benefits from a diverse defense portfolio and steady contract wins, securing $9 billion in awards in the third quarter of 2025 and building a $76 billion backlog. With 25% year-over-year revenue growth in the quarter and continued investments in new mission-critical technologies, such as the delivery of its 100th KC-46 tanker, Boeing’s BDS unit is positioned for sustained momentum.

The Standpoint of RTX

RTX continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Keeping up with its usual track record, the company won several notable defense awards during the third quarter, which resulted in solid bookings of $15.9 billion. Some significant ones among these awards are a contract worth $1.5 billion to produce the Lower Tier Air and Missile Defense Sensor. It also secured a $500 million contract to produce Stinger missiles.

RTX witnessed a solid defense backlog of $103 billion as of Sept. 30, 2025. Based on such solid bookings as well as backlog count, management continues to expect both domestic and international program growth to remain robust for its defense business in the coming days. 

Let's compare the two stocks' fundamentals to determine which one is a better investment option at present.

How Do Zacks Estimates Compare for BA & RTX?

The Zacks Consensus Estimate for Boeing’s 2025 and 2026 earnings per share (EPS) has decreased 146.25% and 47.64%, respectively, in the past 60 days.
 

The Zacks Consensus Estimate for RTX’s 2025 and 2026 EPS has increased 0.81% and 0.90%, respectively, in the past 60 days.

Valuation for BA & RTX

BA shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.75X compared with RTX’s P/S F12M of 2.69X.

Debt Position of BA & RTX

Currently, Boeing’s total debt to capital is 118.3% compared with RTX’s 37.05%.

BA & RTX’s Price Performance

In the past six months, shares of Boeing have increased 1.6%, while those of RTX have risen 28.8%.

BA or RTX: Which Is a Better Choice Now?

Boeing’s Defense, Space & Security segment is well positioned for long-term growth. Strong funding for fighter jet programs and the Space Force, combined with a diversified defense portfolio, has driven solid contract wins and solid backlog, reinforcing the unit’s positive momentum. RTX continues to see strong demand for its combat-tested defense systems, securing $15.9 billion in defense bookings during the third quarter. Supported by a robust defense backlog, RTX expects sustained growth across both U.S. and international defense programs.

Our choice at the moment is RTX, given its better price performance, strong earnings growth and better debt management than Boeing. Both BA and RTX carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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