Axon Enterprise, Inc (AXON) vs Transdigm Group Incorporated (TDG)

Axon Enterprise, Inc and Transdigm Group Incorporated are both Aerospace & Defense companies. Transdigm Group Incorporated is the larger, with a market value of $65.7B against $31.1B — 2.1× the size. Transdigm Group Incorporated trades at the lower P/E: 36.1× against 155×. Axon Enterprise, Inc grew revenue faster over the last twelve months: 34.6% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 6.19%) and the higher return on invested capital (14.3% vs 0.32%). Across the 21 metrics below, Transdigm Group Incorporated leads on 17 and Axon Enterprise, Inc on 4.

Valuation

Metric AXON TDG Aerospace & Defense median
P/E 155.46 36.15 28.48
P/S 9.65 6.83 2.95
P/B 8.45 n/m 2.68
Price to free cash flow 235.05 35.49 31.70
EV/EBITDA 241.11 19.55 16.85
EV/Sales 9.97 9.83 2.74
Earnings yield 0.64% 2.77% 0.89%
Free cash flow yield 0.43% 2.82% 0.00%

Profitability

Metric AXON TDG Aerospace & Defense median
Gross margin 59.41% 59.56% 26.41%
Operating margin 0.74% 46.04% 3.69%
Net margin 6.19% 19.09% 2.74%
Free cash flow margin 4.14% 19.25% 0.00%
Return on equity 6.22% (25.83%) 4.44%
Return on assets 2.91% 7.73% 1.90%
Return on invested capital 0.32% 14.27% 0.26%

Growth

Metric AXON TDG Aerospace & Defense median
Revenue growth (TTM) 34.60% 16.66% 18.03%
EPS growth (last fiscal year) (68.54%) 25.21% 24.80%
Revenue growth, 5-year CAGR 32.48% 11.59% 9.73%
Net income growth, 5-year CAGR 0.00% 29.42% 0.00%

Health

Metric AXON TDG Aerospace & Defense median
Debt to equity 0.47 (3.34) 0.20
Current ratio 2.15 3.02 2.85
Net debt to EBITDA (0.17) 5.85 1.29

Dividend

Metric AXON TDG Aerospace & Defense median
Dividend yield — 0.00% 0.91%
Payout ratio — 0.00 0.30

Size

Metric AXON TDG Aerospace & Defense median
Market cap 31.08b 65.73b 1.78b

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