Better Buy: General Electric or Raytheon Technologies?
General Electric (NYSE: GE) or Raytheon Technologies (NYSE: RTX) for 2023? The two industrial giants are fierce rivals in commercial aerospace (they are the two leading players in aircraft engines), and a comparison of their relative investment merits says a lot about the current overall investing environment. So which stock is the better option for investors right now?
A lazy, superficial interpretation of affairs would quickly conclude that Raytheon Technologies is more of a commercial aerospace company versus the more broad-based, industrially focused General Electric. That view might lead investors to favor Raytheon because commercial flight departures are still recovering to at least 2019 levels. Meanwhile, the economic slowdown will pressure other areas of the industrial economy currently operating closer to full capacity.
However, that view would be wrong. In reality, commercial aerospace is more important to GE. While GE does have a healthcare segment, it will be spun off in early January 2023. Looking into the implied guidance for 2023, GE's management believes GE Aerospace (predominantly a commercial aerospace business) will generate $6 billion in profit in 2023, compared to $1 billion to $2 billion for GE Power, while the remaining business, GE Renewable Energy will struggle to avoid a loss in 2023.
Source Fool.com
