L3Harris Technologies vs RTX: Which Stock Could Rally?

LHX: L3Harris Technologies logo
LHX
L3Harris Technologies

L3Harris Technologies fell -16% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer RTX gives you more. RTX (RTX) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs L3Harris Technologies (LHX) stock, suggesting you may be better off investing in RTX

  • RTX’s Last 12 Months revenue growth was 10.6%, vs. LHX’s 5.8%.
  • In addition, its Last 3-Year Average revenue growth came in at 9.7%, ahead of LHX’s 8.9%.
  • RTX’s LTM margin is higher: 10.9% vs. LHX’s 9.9%.

These differences become even clearer when you look at the financials side by side. The table highlights how LHX’s fundamentals stack up against those of RTX on growth, margins, momentum, and valuation multiples.

Trefis: LHX Stock Insights

Valuation & Performance Overview

  LHX RTX Preferred
     
Valuation      
P/EBIT Ratio 25.3 23.7 RTX
     
Revenue Growth      
Last Quarter 11.9% 8.7% LHX
Last 12 Months 5.8% 10.6% RTX
Last 3 Year Average 8.9% 9.7% RTX
     
Operating Margins      
Last 12 Months 9.9% 10.9% RTX
Last 3 Year Average 9.7% 8.1% LHX
     
Momentum      
Last 3 Year Return 71.5% 91.1% RTX

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.

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See detailed fundamentals on Buy or Sell RTX Stock and Buy or Sell LHX Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2021 2022 2023 2024 2025 2026 Total [1] Avg Best
Returns
LHX Return 15% -0% 4% 2% 42% 5% 81%    
RTX Return 23% 20% -14% 41% 61% -5% 172%   <===
S&P 500 Return 27% -19% 24% 23% 16% 5% 92%    
Monthly Win Rates [3]
LHX Win Rate 67% 33% 42% 75% 75% 40%   55%  
RTX Win Rate 67% 58% 42% 58% 75% 40%   57%  
S&P 500 Win Rate 75% 42% 67% 75% 67% 40%   61% <===
Max Drawdowns [4]
LHX Max Drawdown -9% -2% -21% -4% -7% 0%   -7% <===
RTX Max Drawdown -8% -4% -30% 0% -1% -5%   -8%  
S&P 500 Max Drawdown -1% -25% -1% -2% -15% -7%   -9%  

[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/5/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read RTX Dip Buyer Analyses and LHX Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Still not sure about LHX or RTX? Consider portfolio approach.

Portfolios Are The Smarter Way To Invest

Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.

Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.