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 $136.7B against $65.7B — 2.1× the size. The Boeing Company trades at the lower P/E: 17.9× against 36.3×. The Boeing Company grew revenue faster over the last twelve months: 17.5% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 7.70%) and the lower return on invested capital (14.3% vs 19.2%). Across the 21 metrics below, Transdigm Group Incorporated leads on 12 and The Boeing Company on 9.

Valuation

Metric BA TDG Aerospace & Defense median
P/E 17.91 36.28 29.42
P/S 1.45 6.86 3.05
P/B 20.93 n/m 2.91
Price to free cash flow 1,306.75 35.62 29.52
EV/EBITDA 13.51 19.60 17.23
EV/Sales 1.71 9.86 3.25
Earnings yield 5.58% 2.76% 0.95%
Free cash flow yield 0.08% 2.81% 0.00%

Profitability

Metric BA TDG Aerospace & Defense median
Gross margin 9.42% 59.56% 26.41%
Operating margin 10.26% 46.04% 3.69%
Net margin 7.70% 19.09% 2.74%
Free cash flow margin 0.12% 19.25% 0.73%
Return on equity (858.49%) (25.83%) 5.39%
Return on assets 4.56% 7.73% 2.18%
Return on invested capital 19.15% 14.27% 0.64%

Growth

Metric BA TDG Aerospace & Defense median
Revenue growth (TTM) 17.53% 16.66% 18.03%
EPS growth (last fiscal year) 113.51% 25.21% 24.80%
Revenue growth, 5-year CAGR 9.00% 11.59% 9.73%
Net income growth, 5-year CAGR 0.00% 29.42% 0.00%

Health

Metric BA TDG Aerospace & Defense median
Debt to equity 7.00 (3.34) 0.18
Current ratio 1.13 3.02 2.85
Net debt to EBITDA 3.96 5.85 1.29

Dividend

Metric BA TDG Aerospace & Defense median
Dividend yield — 0.00% 0.89%
Payout ratio — 0.00 0.30

Size

Metric BA TDG Aerospace & Defense median
Market cap 136.70b 65.73b 1.52b

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