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 $323.7B against $62.7B — 5.2× the size. Transdigm Group Incorporated trades at the lower P/E: 34.6× against 36.7×. 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%). Only GE Aerospace pays a dividend (0.56%). Across the 22 metrics below, Transdigm Group Incorporated leads on 14 and GE Aerospace on 8.

Valuation

Metric GE TDG Aerospace & Defense median
P/E 36.73 34.57 31.81
P/S 6.46 6.53 3.55
P/B 18.30 n/m 2.59
Price to free cash flow 47.70 33.94 31.99
EV/EBITDA 25.95 18.96 18.08
EV/Sales 6.65 9.53 3.37
Earnings yield 2.72% 2.89% 1.38%
Free cash flow yield 2.10% 2.95% 0.21%

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% 1.43%
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% 24.27%
Revenue growth, 5-year CAGR (9.57%) 11.59% 9.73%
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 0.56% 0.00% 0.90%
Payout ratio 0.21 0.00 0.32

Size

Metric GE TDG Aerospace & Defense median
Market cap 323.72b 62.70b 2.19b

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