Elbit Systems Ltd. (ESLT) vs Transdigm Group Incorporated (TDG)

Elbit Systems Ltd. and Transdigm Group Incorporated are both Aerospace & Defense companies. Transdigm Group Incorporated is the larger, with a market value of $62.7B against $34.8B — 1.8× the size. Transdigm Group Incorporated trades at the lower P/E: 34.6× against 55.2×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 13.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 7.44%) and the higher return on invested capital (14.3% vs 13.3%). Only Elbit Systems Ltd. pays a dividend (0.50%). Across the 22 metrics below, Transdigm Group Incorporated leads on 16 and Elbit Systems Ltd. on 6.

Valuation

Metric ESLT TDG Aerospace & Defense median
P/E 55.22 34.57 31.81
P/S 4.13 6.53 3.55
P/B 8.29 n/m 2.59
Price to free cash flow 51.69 33.94 31.99
EV/EBITDA 35.79 18.96 18.08
EV/Sales 4.05 9.53 3.37
Earnings yield 1.81% 2.89% 1.38%
Free cash flow yield 1.93% 2.95% 0.21%

Profitability

Metric ESLT TDG Aerospace & Defense median
Gross margin 25.03% 59.56% 25.48%
Operating margin 9.22% 46.04% 4.54%
Net margin 7.44% 19.09% 2.22%
Free cash flow margin 8.00% 19.25% 1.43%
Return on equity 0.00% (25.83%) 6.43%
Return on assets 4.90% 7.73% 2.70%
Return on invested capital 13.26% 14.27% 1.56%

Growth

Metric ESLT TDG Aerospace & Defense median
Revenue growth (TTM) 13.70% 16.66% 18.43%
EPS growth (last fiscal year) 58.64% 25.21% 24.27%
Revenue growth, 5-year CAGR 11.23% 11.59% 9.73%
Net income growth, 5-year CAGR 17.59% 29.42% 0.00%

Health

Metric ESLT TDG Aerospace & Defense median
Debt to equity 0.06 (3.34) 0.24
Current ratio 1.39 3.02 2.72
Net debt to EBITDA (0.57) 5.85 1.12

Dividend

Metric ESLT TDG Aerospace & Defense median
Dividend yield 0.50% 0.00% 0.90%
Payout ratio 0.28 0.00 0.32

Size

Metric ESLT TDG Aerospace & Defense median
Market cap 34.76b 62.70b 2.19b

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