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 $62.7B against $44.8B — 1.4× the size. L3Harris Technologies Inc trades at the lower P/E: 25.0× against 34.6×. 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%). Only L3Harris Technologies Inc pays a dividend (1.99%). 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 24.95 34.57 31.81
P/S 2.02 6.53 3.55
P/B 2.33 n/m 2.59
Price to free cash flow 16.49 33.94 31.99
EV/EBITDA 15.15 18.96 18.08
EV/Sales 2.43 9.53 3.37
Earnings yield 4.01% 2.89% 1.38%
Free cash flow yield 6.06% 2.95% 0.21%

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% 1.43%
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% 24.27%
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 0.55 (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 1.99% 0.00% 0.90%
Payout ratio 0.50 0.00 0.32

Size

Metric LHX TDG Aerospace & Defense median
Market cap 44.78b 62.70b 2.19b

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