IDCC vs RTX: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 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. IDCC 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 IDCC 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.

InterDigital is a wireless and video technology research and patent licensing company. The company develops fundamental technology used in cellular standards (5G, 6G, prior generations), video coding standards (HEVC, VVC), and other communications and media technologies. The company contributes patents to standard-setting organizations and earns recurring licensing revenue from device manufacturers (smartphone OEMs, consumer electronics manufacturers) that implement those standards.

Full IDCC 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.

• IDCC drivers: 5G licensing scale-up; Video standards licensing expansion.
• 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: Licensing disputes can suspend royalty receipts during periods of litigation. 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 IDCC 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 IDCC and RTX guides.

IDCC. InterDigital's valuation reflects the high-margin licensing business model and a re-rating in 2026: the trailing P/E is near 38 and the forward multiple about 29 at the October 16 price, against roughly 15x in early 2026. Earnings stay lumpy because licensing settlements land in single quarters, as the $4.62 second-quarter EPS against a $1.52 estimate showed, while multi-year contracted licensing provides smoother underlying economics. Price-to-free-cash-flow, near 14 on trailing figures, may be more useful than trailing P/E.

RTX. RTX trades as a large, dividend-paying aerospace and defense blue chip, now at about 34 times trailing and 24 times forward earnings after a 22% one-year gain. The premium rests on double-digit revenue growth, four straight quarterly EPS beats and about $9.9 billion of trailing free cash flow, weighed against program-execution risk like the geared-turbofan issue. Q3 2026 results on October 20 (consensus EPS about $1.78 on about $24.1 billion of revenue) are the next check.

Headline figures (approximate, October 2026): IDCC shows revenue (ttm) ~$789 million, 2026 revenue guidance ~$775-845 million (raised from ~$675-775 million), annualized recurring revenue ~$626 million (Q2 2026, +13% y/y), operating margin ~54% (licensing model); RTX shows revenue (ttm) ~$93.5 billion, revenue growth (q2 2026, yoy) ~14.5%, operating margin ~12.7%, net income (ttm) ~$7.7 billion.

IDCC 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 IDCC and RTX exposure against your real portfolio. It is not an investment adviser.