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 $65.7B against $48.1B — 1.4× the size. L3Harris Technologies Inc trades at the lower P/E: 23.8× against 36.1×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 7.33%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.62%) and the higher return on invested capital (14.3% vs 5.69%). Only L3Harris Technologies Inc pays a dividend (1.91%). Across the 22 metrics below, Transdigm Group Incorporated leads on 12 and L3Harris Technologies Inc on 10.

Valuation

Metric LHX TDG Aerospace & Defense median
P/E 23.79 36.15 28.48
P/S 2.07 6.83 2.95
P/B 2.38 n/m 2.68
Price to free cash flow 13.20 35.49 31.70
EV/EBITDA 14.77 19.55 16.85
EV/Sales 2.41 9.83 2.74
Earnings yield 4.20% 2.77% 0.89%
Free cash flow yield 7.58% 2.82% 0.00%

Profitability

Metric LHX TDG Aerospace & Defense median
Gross margin 25.55% 59.56% 26.41%
Operating margin 11.01% 46.04% 3.69%
Net margin 8.62% 19.09% 2.74%
Free cash flow margin 15.65% 19.25% 0.00%
Return on equity 10.11% (25.83%) 4.44%
Return on assets 4.74% 7.73% 1.90%
Return on invested capital 5.69% 14.27% 0.26%

Growth

Metric LHX TDG Aerospace & Defense median
Revenue growth (TTM) 7.33% 16.66% 18.03%
EPS growth (last fiscal year) 8.39% 25.21% 24.80%
Revenue growth, 5-year CAGR 3.74% 11.59% 9.73%
Net income growth, 5-year CAGR 7.49% 29.42% 0.00%

Health

Metric LHX TDG Aerospace & Defense median
Debt to equity 0.54 (3.34) 0.20
Current ratio 1.20 3.02 2.85
Net debt to EBITDA 2.68 5.85 1.29

Dividend

Metric LHX TDG Aerospace & Defense median
Dividend yield 1.91% 0.00% 0.91%
Payout ratio 0.46 0.00 0.30

Size

Metric LHX TDG Aerospace & Defense median
Market cap 48.06b 65.73b 1.78b

Compare with another peer

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