DRS vs RTX: How Leonardo DRS and RTX Corporation Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: RTX is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DRS and RTX share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DRS and RTX exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Leonardo DRS is a defense-technology company that designs and builds advanced electronics and systems for the US military and allied forces. A majority-owned subsidiary of Italy's Leonardo, the company focuses on areas where it holds differentiated technology: advanced sensing and electro-optical infrared systems, electric power and propulsion for naval vessels, force protection, computing and network systems, and electronic warfare. Its products include infrared sensors and targeting systems for vehicles and aircraft, power-conversion and propulsion equipment for Navy ships and submarines, and tactical computing and communications gear used across the battlefield. Leonardo DRS earns revenue primarily through long-cycle US Department of Defense contracts and programs, with a backlog of orders that provides multi-year visibility. The company benefits from positions on major programs such as next-generation naval power systems and ground-vehicle sensing, areas tied to military modernization priorities. After a 2022 merger that brought it public, Leonardo DRS trades on the Nasdaq and is headquartered in Arlington, Virginia, positioning itself as a pure-play, technology-focused defense supplier rather than a full platform prime.

Full DRS guide

RTX Corporation (RTX), formerly Raytheon Technologies, is one of the world's largest aerospace and defense companies. It operates three businesses. Collins Aerospace supplies avionics, interiors, actuation, and other systems for commercial and military aircraft. Pratt & Whitney designs and manufactures jet engines for airliners (including the geared turbofan) and military aircraft, and earns substantial recurring revenue from servicing its large installed engine base. Raytheon, the defense segment, builds missiles, missile defense systems (including Patriot), radars, and other advanced defense electronics for the US military and allied governments.

Full RTX guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• DRS drivers: Advanced sensing and electro-optics; Naval power and propulsion.
• RTX drivers: Commercial aftermarket; Defense backlog and missiles.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Leonardo DRS depends heavily on the US defense budget and program funding, which are subject to political appropriations risk, continuing resolutions, and potential cuts. For RTX, rTX faces program-execution risks, most visibly the Pratt & Whitney geared-turbofan powder-metal inspection issue that forced costly engine removals and weighed on cash.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DRS if you believe its drivers more; RTX if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DRS and RTX guides.

DRS. Leonardo DRS trades at a premium relative to some legacy defense names, reflecting its higher-growth, technology-focused portfolio in sensing and naval power and its margin-expansion potential. The financial profile features a multi-year backlog, improving margins as newer programs scale, and a small recently initiated dividend, though majority parent ownership limits the public float.

RTX. RTX trades as a large, dividend-paying aerospace and defense blue chip valued on its huge backlog, recurring aftermarket revenue, and dual commercial-defense exposure rather than rapid growth. Its multiple reflects steady, cash-generative franchises balanced against program-execution risk like the geared-turbofan issue, with the dividend and backlog supporting the shares.

Headline figures (approximate, early 2026): DRS shows revenue (ttm) ~$3 billion, revenue growth High-single-digit to low-double-digit, operating margin ~10-12%, targeted to expand, backlog Several billion dollars, multi-year visibility; RTX shows revenue (ttm) ~$80 billion, operating margin ~10-12%, backlog Very large (over $200 billion, commercial plus defense), net income (ttm) Several billion dollars.

DRS and RTX are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DRS and RTX exposure against your real portfolio. It is not an investment adviser.