ZACKSยท2025-07-22 12:45Core Insights - Global travel and defense budgets are increasing, leading to heightened investor interest in aerospace stocks, particularly Boeing and RTX, which benefit from overlapping growth drivers [1][2][3] Financial Performance - Boeing's commercial revenues surged by 75% year-over-year in Q1 2025 due to rising global air traffic, while RTX achieved 8% organic sales growth driven by aftermarket services [9][10] - As of Q1 2025, Boeing reported $23.67 billion in cash and equivalents against $7.93 billion in current debt, indicating strong near-term solvency [5] - RTX has $5.16 billion in cash and equivalents, with $3.06 billion in current debt and $38.24 billion in long-term debt, maintaining solid short-term liquidity [6] Growth Catalysts - Both companies are positioned to benefit from a proposed 13% increase in U.S. defense spending to $1.01 trillion for FY26, with significant allocations for aerospace projects [7][8] - The International Air Transport Association projects a 5.8% year-over-year growth in passenger traffic for 2025, which will further support both companies' commercial aviation segments [9] Stock Performance - Over the past three months, Boeing's stock has increased by 33%, outperforming RTX's 26% increase, but RTX has outperformed Boeing over the past year with a 44.3% increase compared to Boeing's 22.9% [18][22] - Boeing trades at a more attractive forward sales multiple of 1.89 compared to RTX's 2.33 [18] Investment Outlook - Boeing presents a more compelling risk-reward opportunity in 2025, showing signs of recovery despite ongoing challenges, while RTX offers operational consistency and diversification [22][23]