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 $65.7B against $38.9B — 1.7× the size. Transdigm Group Incorporated trades at the lower P/E: 36.3× against 41.0×. 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 40.95 36.28 29.42
P/S 6.72 6.86 3.05
P/B 6.92 n/m 2.91
Price to free cash flow 33.76 35.62 29.52
EV/EBITDA 25.36 19.60 17.23
EV/Sales 7.16 9.86 3.25
Earnings yield 2.44% 2.76% 0.95%
Free cash flow yield 2.96% 2.81% 0.00%

Profitability

Metric HEI.A TDG Aerospace & Defense median
Gross margin 40.40% 59.56% 26.41%
Operating margin 24.04% 46.04% 3.69%
Net margin 16.38% 19.09% 2.74%
Free cash flow margin 19.90% 19.25% 0.73%
Return on equity 18.35% (25.83%) 5.39%
Return on assets 9.18% 7.73% 2.18%
Return on invested capital 10.62% 14.27% 0.64%

Growth

Metric HEI.A TDG Aerospace & Defense median
Revenue growth (TTM) 20.69% 16.66% 18.03%
EPS growth (last fiscal year) 33.51% 25.21% 24.80%
Revenue growth, 5-year CAGR 20.21% 11.59% 9.73%
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) 0.18
Current ratio 2.72 3.02 2.85
Net debt to EBITDA 1.61 5.85 1.29

Dividend

Metric HEI.A TDG Aerospace & Defense median
Dividend yield — 0.00% 0.89%
Payout ratio — 0.00 0.30

Size

Metric HEI.A TDG Aerospace & Defense median
Market cap 38.89b 65.73b 1.52b

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