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 $61.3B against $36.2B — 1.7× the size. Transdigm Group Incorporated trades at the lower P/E: 33.9× against 173×. 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 173.43 33.87 33.00
P/S 10.77 6.40 3.63
P/B 9.43 n/m 3.24
Price to free cash flow 262.21 33.25 34.01
EV/EBITDA 268.08 18.69 18.69
EV/Sales 11.09 9.40 3.94
Earnings yield 0.58% 2.95% 1.31%
Free cash flow yield 0.38% 3.01% 0.00%

Profitability

Metric AXON TDG Aerospace & Defense median
Gross margin 59.41% 59.56% 25.48%
Operating margin 0.74% 46.04% 4.54%
Net margin 6.19% 19.09% 2.22%
Free cash flow margin 4.14% 19.25% 0.00%
Return on equity 6.22% (25.83%) 6.43%
Return on assets 2.91% 7.73% 2.70%
Return on invested capital 0.32% 14.27% 1.56%

Growth

Metric AXON TDG Aerospace & Defense median
Revenue growth (TTM) 34.60% 16.66% 18.43%
EPS growth (last fiscal year) (68.54%) 25.21% —
Revenue growth, 5-year CAGR 32.48% 11.59% 9.62%
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) 0.24
Current ratio 2.15 3.02 2.72
Net debt to EBITDA (0.17) 5.85 1.12

Dividend

Metric AXON TDG Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric AXON TDG Aerospace & Defense median
Market cap 36.23b 61.30b 2.52b

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