RTX Corporation (RTX) and AeroVironment, Inc. (AVAV) are both competing for investor attention as global defense spending continues to accelerate in 2026.
Military forces worldwide are increasingly relying on autonomous strike systems, precision-guided weapons, and advanced missile-defense technologies to modernize their capabilities.
Both companies provide precision strike and missile-related solutions aimed at improving targeting, threat engagement, and overall battlefield effectiveness for military customers.
Loitering munitions, missile systems, interceptors, and advanced targeting solutions are playing a growing role in military modernization programs across multiple regions.
AeroVironment scored a major win in September 2026, receiving its first international purchase order for its LOCUST Laser Weapon System, valued at more than $50 million.
Earlier that same month, AVAV was awarded a $464.8 million U.S. Army contract for its Enduring-High Energy Laser program, representing the first production contract for high-energy laser weapon systems in U.S. history.
RTX has been bolstering its aftermarket business, with Collins Aerospace and ST Engineering signing three multi-year agreements to expand component support and repair services for major commercial airlines.
Pratt & Whitney Canada also signed a four-year agreement with AirBorneo Airways to provide MRO services for PW127M engines powering its ATR 72-500 fleet through 2030.
On the earnings outlook, the Zacks Consensus Estimate for RTX’s 2026 sales and EPS implies improvement of 8.4% and 14.8%, respectively, with annual bottom-line estimates moving higher over the past 60 days.
By contrast, the Zacks Consensus Estimate for AVAV’s fiscal 2027 EPS suggests a decline of 1.8%, with bottom-line estimates moving lower over the past 60 days.
RTX also holds a significant advantage in return on equity, posting an ROE of 13.99% compared to AeroVironment’s much lower ROE of 4.04%.
Share price performance over the past year tells a similarly lopsided story, with RTX surging 19.1% while AVAV has lost 48.3% over the same period.
On valuation, AVAV trades at a forward 12-month Price/Sales multiple of 3.39, compared to RTX’s more attractive multiple of 2.57, making RTX the cheaper option on that measure.
RTX currently carries a Zacks Rank of 2, or Buy, while AeroVironment holds a Zacks Rank of 3, or Hold, reflecting the difference in near-term earnings momentum between the two companies.
Both companies remain well-positioned to capture growing government demand for sophisticated defense technologies, but RTX’s broader portfolio and stronger fundamentals give it a clear edge for investors right now.
