Boeing or RTX: Which Defense Stock Presents Greater Value in 2026?

Global Tensions Boost Aerospace and Defense Industry

Rising international conflicts have significantly benefited leading aerospace and defense companies such as Boeing and RTX Corporation. Ongoing unrest in regions like Europe and the Middle East has prompted the United States and its allies to ramp up defense budgets, aiming to reinforce national security.

In January 2026, President Donald Trump announced plans to substantially raise U.S. military spending, targeting an annual budget of $1.5 trillion by 2027—up from the $901 billion allocated for fiscal 2026. This shift highlights a focus on modernizing military capabilities and investing in advanced technology, rather than simply increasing troop numbers. Governments are prioritizing upgrades to existing fleets, development of next-generation aircraft, improvements in missile and defense systems, and overall combat readiness. These trends are creating favorable conditions for established defense contractors whose offerings align with long-term strategic goals.

Both Boeing and RTX, with their extensive involvement in military aviation, advanced defense technologies, and government-backed projects, are highly responsive to changes in defense spending and procurement strategies.

Boeing: Strengths and Recent Performance

Boeing stands as one of the top U.S. aircraft manufacturers, excelling in revenue, orders, and deliveries—especially within the commercial aerospace sector. The ongoing surge in demand for commercial aircraft has led to robust order and delivery activity for Boeing.

Its broad portfolio in defense and space technology continues to attract significant contracts. In the fourth quarter of 2025, Boeing’s Defense, Space & Security division secured $15 billion in new orders, including deals for 15 KC-46A tankers for the U.S. Air Force and 96 Apache helicopters for Poland. As of December 31, 2025, the segment’s backlog reached $85 billion. These contract wins and the resulting backlog are expected to further strengthen the division’s revenue, which saw a notable 37% increase in the fourth quarter.

RTX: Strengths and Recent Performance

RTX consistently receives substantial orders for its proven defense solutions from the Pentagon and international partners. In the fourth quarter, RTX was awarded several major contracts, resulting in bookings of $10.3 billion and a record backlog of $268 billion. Noteworthy deals include a $1.7 billion contract to supply four Patriot air and missile defense systems to Spain, and a $1.2 billion agreement for Tamir missile production.

As of December 31, 2025, RTX reported a defense backlog of $107 billion. With strong bookings and a growing backlog, RTX’s leadership anticipates continued growth in both domestic and international defense programs.

Comparing Zacks Estimates for Boeing and RTX

According to Zacks Investment Research, Boeing’s projected earnings per share (EPS) for 2026 have declined by 31.58% over the past two months.

RTX’s 2026 EPS estimate, on the other hand, has increased by 1.49% during the same period.

Valuation Comparison

Boeing’s shares are valued at a forward Price/Sales ratio of 1.84, while RTX’s stand at 2.79.

Debt Analysis

Boeing’s total debt to capital ratio is currently 90.84%, compared to RTX’s 36.1%. The time-to-interest earned ratio is 2 for Boeing and 6 for RTX, indicating both companies can comfortably cover their interest expenses.

Stock Price Performance

Over the past six months, RTX shares have risen by 22.9%, whereas Boeing’s stock has dropped by 2%.

Which Stock Is More Attractive Right Now?

Boeing’s Defense, Space & Security division is well-positioned for sustained growth, supported by strong funding for fighter jet and space programs and a diversified defense portfolio. This has led to impressive contract wins and a solid backlog, fueling positive momentum. RTX, meanwhile, continues to benefit from steady demand for its defense systems, with strong order inflows from both domestic and international sources. Its expanding backlog and consistent contract wins suggest ongoing growth in its defense business.

At present, RTX stands out as the preferred choice due to its projected earnings growth, superior debt management, and stronger stock performance compared to Boeing. Both companies currently hold a Zacks Rank #3 (Hold).