GE Aerospace (GE) vs Transdigm Group Incorporated (TDG)

GE Aerospace and Transdigm Group Incorporated are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $333.1B against $61.3B — 5.4× the size. Transdigm Group Incorporated trades at the lower P/E: 33.9× against 38.2×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 17.7%) and the lower return on invested capital (14.3% vs 26.5%). Across the 21 metrics below, Transdigm Group Incorporated leads on 15 and GE Aerospace on 6.

Valuation

Metric GE TDG Aerospace & Defense median
P/E 38.21 33.87 33.00
P/S 6.72 6.40 3.63
P/B 19.04 n/m 3.24
Price to free cash flow 49.62 33.25 34.01
EV/EBITDA 26.96 18.69 18.69
EV/Sales 6.91 9.40 3.94
Earnings yield 2.62% 2.95% 1.31%
Free cash flow yield 2.02% 3.01% 0.00%

Profitability

Metric GE TDG Aerospace & Defense median
Gross margin 35.38% 59.56% 25.48%
Operating margin 23.20% 46.04% 4.54%
Net margin 17.72% 19.09% 2.22%
Free cash flow margin 16.89% 19.25% 0.00%
Return on equity 48.22% (25.83%) 6.43%
Return on assets 7.09% 7.73% 2.70%
Return on invested capital 26.53% 14.27% 1.56%

Growth

Metric GE TDG Aerospace & Defense median
Revenue growth (TTM) 21.69% 16.66% 18.43%
EPS growth (last fiscal year) 35.89% 25.21% —
Revenue growth, 5-year CAGR (9.57%) 11.59% 9.62%
Net income growth, 5-year CAGR 10.72% 29.42% 0.00%

Health

Metric GE TDG Aerospace & Defense median
Debt to equity 1.07 (3.34) 0.24
Current ratio 0.98 3.02 2.72
Net debt to EBITDA 0.65 5.85 1.12

Dividend

Metric GE TDG Aerospace & Defense median
Dividend yield 0.29% — 1.04%
Payout ratio 0.03 0.00 0.00

Size

Metric GE TDG Aerospace & Defense median
Market cap 333.06b 61.30b 2.52b

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