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Is GE Aerospace’s Lead Already In Its Stock Price?

Is GE Aerospace’s Lead Already In Its Stock Price?

GE Aerospace (GE) earns the widest operating margin in a group of six peer companies, and it grows revenue faster than all but one of them. The market already charges for that lead. Yet over the past twelve months the stock has returned far less than RTX, a slower-growing rival. The quality is real. The question is how much of it you are already paying for.

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What Do You Get For Paying More Than RTX?

Quite a lot. GE grew revenue 21.7% over the last twelve months, nearly twice the 11.8% at RTX. It kept 18.7% of sales as operating profit, against 11.2% at RTX. For that lead, GE trades at 37.1 times earnings and RTX at 33.5 times, a premium of about 11%.

GE RTX HON BA LMT NOC
Market Cap ($ Bil) 332.6 259.6 67.4 Source link

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