LOAR vs RTX: How Loar Holdings and RTX Corporation Compare (2026)

Last updated July 2026

Short answer

RTX is the larger of the two ($290.93B market cap): the incumbent the market prices for continued execution (27.66x forward earnings, beta 0.30). LOAR is the smaller challenger ($6.36B), actually pricier on forward earnings (43.15x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.

LOAR vs RTX: the tie-breaker metrics

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.

MetricLOARRTXWhat it tells you
Market cap$6.36B$290.93BSize. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E43.1527.66Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up.
Trailing P/E95.6138.00Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price.
Beta0.470.30Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through.
Price vs 52-week range49% of range92% of rangeWhere today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why.
Price / book5.394.39How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

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.

Before you buy: how LOAR and RTX affect your concentration

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. LOAR 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 LOAR 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.

What does Loar Holdings (LOAR) do?

Loar Holdings is a diversified manufacturer of niche aerospace and defense components, supplying parts and systems that go onto commercial and military aircraft, helicopters, and other platforms. The company designs and produces a wide range of highly engineered, often proprietary products, including specialized seals, gaskets, fluid controls, actuation and motion systems, sensors, switches, instruments, and other flight-critical and cabin components. Loar grows through a combination of organic development and acquisitions, rolling up small, specialized aerospace suppliers and integrating them under a decentralized operating model. A defining feature of its business is high aftermarket exposure: a large share of revenue comes from selling spare parts and replacement components for the existing global fleet, which generates recurring, higher-margin sales over the multi-decade life of an aircraft. Because many of its parts are sole-source or hold proprietary designs and are certified onto specific platforms, Loar enjoys strong pricing power and switching costs. It went public in 2024 and is positioned as a fast-growing, acquisitive aerospace components specialist. Headquartered in White Plains, New York.

Full LOAR guide

What does RTX Corporation (RTX) do?

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

LOAR vs RTX: how do they differ?

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

  • LOAR drivers: High-margin aftermarket exposure; Proprietary, sole-source content.
  • RTX drivers: Commercial aftermarket; Defense backlog and missiles.

Which fits which kind of investor

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: Loar is a relatively new public company with a high valuation that embeds aggressive growth expectations, so any slowdown or execution stumble could pressure the multiple. 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.

LOAR or RTX: which should you pick?

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 LOAR 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 LOAR and RTX guides.

LOAR vs RTX: the full fundamentals

LOAR. Loar trades at a premium growth multiple, well above the typical industrial, reflecting its high margins, large aftermarket mix, proprietary sole-source content, and acquisition-driven growth. The valuation embeds expectations of continued double-digit revenue growth and successful integration of acquisitions. As a smaller, recently public name, it is more volatile and is often valued on EBITDA and growth rather than trailing earnings, with the multiple sensitive to execution and the aerospace cycle.

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): LOAR shows revenue (ttm) ~$0.5 billion, operating margin ~20%+ (high, reflecting proprietary, aftermarket-heavy mix), ebitda margin high, reflecting niche, sole-source content, revenue growth strong double-digit, organic plus acquisitions; 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.

The bottom line: LOAR vs RTX

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

Wondering how LOAR or RTX fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in Loar Holdings with AI

Connect the broker you already use and ask Walnut's AI how LOAR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

FAQ

What is the difference between LOAR and RTX?

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Loar Holdings is a diversified manufacturer of niche aerospace and defense components, supplying parts and systems that go onto commercial and military aircraft, helicopters, and other platforms. RTX Corporation (RTX), formerly Raytheon Technologies, is one of the world's largest aerospace and defense companies. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.

Is LOAR or RTX the better stock?

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Neither is universally better. RTX is the larger incumbent; LOAR is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.

Which is cheaper, LOAR or RTX?

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On forward P/E (as of July 2026), LOAR trades at 43.15x and RTX at 27.66x, so RTX is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.

Should you own both LOAR and RTX?

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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.

What are the risks of LOAR vs RTX?

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LOAR: Loar is a relatively new public company with a high valuation that embeds aggressive growth expectations, so any slowdown or execution stumble could pressure the multiple. Its roll-up strategy depends on continued access to attractively priced acquisitions and successful integration; overpaying or integration missteps would hurt returns, and acquisitions add debt. Aerospace is cyclical and sensitive to air-travel demand, airline health, and defense budgets. Supply-chain constraints, certification delays, and reliance on a healthy commercial aerospace cycle (including Boeing and Airbus production rates) are risks. Concentration in niche parts and dependence on key platforms add further exposure. 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. Defense contracts can carry fixed-price exposure, supply-chain and labor pressures, and dependence on government budgets and procurement timing. Commercial aerospace is cyclical and sensitive to airline health, fuel prices, and travel demand. Large pension, warranty, and regulatory liabilities add complexity, and the stock can be hit by single-program problems given its size. Geopolitical shifts cut both ways: they support defense demand but introduce export-control and policy risk. Margins depend on disciplined execution across many long-cycle programs.

Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell LOAR or RTX; figures are approximate and dated (as of July 2026). Verify current data before investing.

    LOAR vs RTX: How Loar Holdings and RTX Corporation Compare (2026), Walnut