Raytheon (NYSE: RTN) is one of 44 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare Raytheon to related companies based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.
Raytheon pays an annual dividend of $3.19 per share and has a dividend yield of 1.7%. Raytheon pays out 43.9% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.6% and pay out 36.1% of their earnings in the form of a dividend. Raytheon has raised its dividend for 12 consecutive years.
This is a breakdown of current recommendations for Raytheon and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Raytheon currently has a consensus price target of $184.62, indicating a potential downside of 0.71%. As a group, “Aerospace & Defense” companies have a potential upside of 5.82%. Given Raytheon’s competitors higher possible upside, analysts plainly believe Raytheon has less favorable growth aspects than its competitors.
Insider and Institutional Ownership
73.8% of Raytheon shares are owned by institutional investors. Comparatively, 70.2% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.2% of Raytheon shares are owned by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Raytheon has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Raytheon’s competitors have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.
Valuation and Earnings
This table compares Raytheon and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Raytheon||$24.52 billion||$3.71 billion||25.61|
|Raytheon Competitors||$8.56 billion||$1.20 billion||81.99|
Raytheon has higher revenue and earnings than its competitors. Raytheon is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Raytheon and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Raytheon beats its competitors on 8 of the 15 factors compared.
Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company 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 develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defense, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.
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