Heico Corporation (HEI.A) vs Transdigm Group Incorporated (TDG)

Heico Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. Transdigm Group Incorporated is the larger, with a market value of $61.3B against $36.3B — 1.7× the size. Transdigm Group Incorporated trades at the lower P/E: 33.9× against 38.2×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs 16.4%) and the higher return on invested capital (14.3% vs 10.6%). Across the 21 metrics below, Heico Corporation leads on 11 and Transdigm Group Incorporated on 10.

Valuation

Metric HEI.A TDG Aerospace & Defense median
P/E 38.16 33.87 33.00
P/S 6.26 6.40 3.63
P/B 6.45 n/m 3.24
Price to free cash flow 31.46 33.25 34.01
EV/EBITDA 23.74 18.69 18.69
EV/Sales 6.71 9.40 3.94
Earnings yield 2.62% 2.95% 1.31%
Free cash flow yield 3.18% 3.01% 0.00%

Profitability

Metric HEI.A TDG Aerospace & Defense median
Gross margin 40.40% 59.56% 25.48%
Operating margin 24.04% 46.04% 4.54%
Net margin 16.38% 19.09% 2.22%
Free cash flow margin 19.90% 19.25% 0.00%
Return on equity 18.35% (25.83%) 6.43%
Return on assets 9.18% 7.73% 2.70%
Return on invested capital 10.62% 14.27% 1.56%

Growth

Metric HEI.A TDG Aerospace & Defense median
Revenue growth (TTM) 20.69% 16.66% 18.43%
EPS growth (last fiscal year) 33.51% 25.21% —
Revenue growth, 5-year CAGR 20.21% 11.59% 9.62%
Net income growth, 5-year CAGR 17.07% 29.42% 0.00%

Health

Metric HEI.A TDG Aerospace & Defense median
Debt to equity 0.51 (3.34) 0.24
Current ratio 2.72 3.02 2.72
Net debt to EBITDA 1.61 5.85 1.12

Dividend

Metric HEI.A TDG Aerospace & Defense median
Dividend yield 0.17% — 1.04%
Payout ratio 0.07 0.00 0.00

Size

Metric HEI.A TDG Aerospace & Defense median
Market cap 36.31b 61.30b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack