MSI vs RTX: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
RTX is the larger of the two ($261.36B market cap): the incumbent the market prices for continued execution (24.64x forward earnings, beta 0.31). MSI is the smaller challenger ($76.65B), priced similarly on forward earnings (23.84x): 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.
MSI vs RTX: the tie-breaker metrics
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.
| Metric | MSI | RTX | What it tells you |
|---|---|---|---|
| Market cap | $76.65B | $261.36B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 23.84 | 24.64 | Valuation 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/E | 36.47 | 34.14 | Valuation 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. |
| Beta | 0.89 | 0.31 | Volatility 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 range | 77% of range | 53% of range | Where 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 / book | 28.69 | 3.94 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how MSI 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. MSI 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 MSI 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 Motorola Solutions (MSI) do?
Motorola Solutions provides communications and software products to public safety and enterprise customers. The company's core business is land mobile radio (LMR) systems used by police, fire, and emergency medical services worldwide; Motorola Solutions has dominant share in this market. The company has expanded over the past decade through acquisitions into adjacent areas: command center software, video surveillance and analytics (Avigilon, Pelco, IPVideo, Openpath), and license plate recognition (Vigilant, Watchguard).
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.
MSI 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.
- MSI drivers: Public safety video and software; LMR hardware durability.
- 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: Public sector budget cycles can affect short-term revenue. 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.
MSI 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 MSI 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 MSI and RTX guides.
MSI vs RTX: the full fundamentals
MSI. Motorola Solutions trades at ~37x trailing and ~24x forward earnings as of October 16, 2026, a premium to the broad market that rests on high recurring revenue, the dominant LMR position, and consistent execution. The stock is up ~22% in 2026 after four straight quarterly beats; analysts' mean target is ~$527. Public safety end markets are durable across economic cycles, but debt of ~$9.6 billion is higher than it was a year ago.
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): MSI shows revenue (ttm) ~$12.2 billion, revenue growth (q2 2026, yoy) ~13%, operating margin ~27%, net income (ttm) ~$2.1 billion; RTX shows revenue (ttm) ~$93.5 billion, revenue growth (q2 2026, yoy) ~14.5%, operating margin ~12.7%, net income (ttm) ~$7.7 billion.
The bottom line: MSI vs RTX
MSI 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 MSI and RTX exposure against your real portfolio. It is not an investment adviser.
Wondering how MSI 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 Motorola Solutions with AI
Connect the broker you already use and ask Walnut's AI how MSI 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 MSI and RTX?
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Motorola Solutions provides communications and software products to public safety and enterprise customers. 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 MSI or RTX the better stock?
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Neither is universally better. RTX is the larger incumbent; MSI is the smaller challenger and looks cheaper 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, MSI or RTX?
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On forward P/E (as of October 2026), MSI trades at 23.84x and RTX at 24.64x, so MSI 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 MSI 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 MSI vs RTX?
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MSI: Public sector budget cycles can affect short-term revenue. Regulatory debates around law enforcement technology (facial recognition, predictive policing) can constrain product roadmaps. Leverage has risen: total debt stood near ~$9.6 billion against ~$710 million of cash as of July 2026, so acquisition capacity and buybacks now compete with paying that down. The valuation also leaves little cushion, at ~37x trailing earnings, and the stock's 52-week range of ~$359 to ~$495 shows it can de-rate sharply even with steady results. 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. Debt of about $38.9 billion against about $8.3 billion of cash limits flexibility. Valuation is another consideration: at about 34 times trailing and 24 times forward earnings, the shares price in continued growth, and some analysts trimmed targets in October 2026 (RBC cut its target to $235 from $250). 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.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MSI or RTX; figures are approximate and dated (as of October 2026). Verify current data before investing.