The Boeing Company (BA) vs Transdigm Group Incorporated (TDG)

The Boeing Company and Transdigm Group Incorporated are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $156.4B against $61.3B — 2.6× the size. Transdigm Group Incorporated trades at the lower P/E: 33.9× against 74.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 2.22%) and the higher return on invested capital (14.3% vs 8.99%). Across the 20 metrics below, Transdigm Group Incorporated leads on 14 and The Boeing Company on 6.

Valuation

Metric BA TDG Aerospace & Defense median
P/E 74.18 33.87 33.00
P/S 1.67 6.40 3.63
P/B 25.63 n/m 3.24
Price to free cash flow n/m 33.25 34.01
EV/EBITDA 26.85 18.69 18.69
EV/Sales 1.94 9.40 3.94
Earnings yield 1.35% 2.95% 1.31%
Free cash flow yield (0.09%) 3.01% 0.00%

Profitability

Metric BA TDG Aerospace & Defense median
Gross margin 4.68% 59.56% 25.48%
Operating margin 4.89% 46.04% 4.54%
Net margin 2.22% 19.09% 2.22%
Free cash flow margin (0.14%) 19.25% 0.00%
Return on equity 148.84% (25.83%) 6.43%
Return on assets 1.30% 7.73% 2.70%
Return on invested capital 8.99% 14.27% 1.56%

Growth

Metric BA TDG Aerospace & Defense median
Revenue growth (TTM) 24.78% 16.66% 18.43%
EPS growth (last fiscal year) 113.51% 25.21% —
Revenue growth, 5-year CAGR 9.00% 11.59% 9.62%
Net income growth, 5-year CAGR 0.00% 29.42% 0.00%

Health

Metric BA TDG Aerospace & Defense median
Debt to equity 7.51 (3.34) 0.24
Current ratio 1.14 3.02 2.72
Net debt to EBITDA 3.96 5.85 1.12

Dividend

Metric BA TDG Aerospace & Defense median
Dividend yield 0.16% — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric BA TDG Aerospace & Defense median
Market cap 156.38b 61.30b 2.52b

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