L3Harris Technologies Inc (LHX) vs Transdigm Group Incorporated (TDG)

L3Harris Technologies Inc and Transdigm Group Incorporated are both Aerospace & Defense companies. Transdigm Group Incorporated is the larger, with a market value of $61.3B against $44.5B — 1.4× the size. L3Harris Technologies Inc trades at the lower P/E: 23.9× against 33.9×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 7.29%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.11%) and the higher return on invested capital (14.3% vs 5.12%). Across the 21 metrics below, Transdigm Group Incorporated leads on 12 and L3Harris Technologies Inc on 9.

Valuation

Metric LHX TDG Aerospace & Defense median
P/E 23.86 33.87 33.00
P/S 1.93 6.40 3.63
P/B 2.23 n/m 3.24
Price to free cash flow 15.77 33.25 34.01
EV/EBITDA 14.60 18.69 18.69
EV/Sales 2.34 9.40 3.94
Earnings yield 4.19% 2.95% 1.31%
Free cash flow yield 6.34% 3.01% 0.00%

Profitability

Metric LHX TDG Aerospace & Defense median
Gross margin 25.48% 59.56% 25.48%
Operating margin 10.49% 46.04% 4.54%
Net margin 8.11% 19.09% 2.22%
Free cash flow margin 12.24% 19.25% 0.00%
Return on equity 9.50% (25.83%) 6.43%
Return on assets 4.42% 7.73% 2.70%
Return on invested capital 5.12% 14.27% 1.56%

Growth

Metric LHX TDG Aerospace & Defense median
Revenue growth (TTM) 7.29% 16.66% 18.43%
EPS growth (last fiscal year) 8.39% 25.21% —
Revenue growth, 5-year CAGR 3.74% 11.59% 9.62%
Net income growth, 5-year CAGR 7.49% 29.42% 0.00%

Health

Metric LHX TDG Aerospace & Defense median
Debt to equity 0.55 (3.34) 0.24
Current ratio 1.18 3.02 2.72
Net debt to EBITDA 2.68 5.85 1.12

Dividend

Metric LHX TDG Aerospace & Defense median
Dividend yield 2.32% — 1.04%
Payout ratio 1.07 0.00 0.00

Size

Metric LHX TDG Aerospace & Defense median
Market cap 44.49b 61.30b 2.52b

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