Lockheed Martin Corporation (LMT) vs Transdigm Group Incorporated (TDG)

Lockheed Martin Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $120.7B against $61.3B — 2.0× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 33.9×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 7.20%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.16%) and the lower return on invested capital (14.3% vs 22.4%). Across the 21 metrics below, Lockheed Martin Corporation leads on 11 and Transdigm Group Incorporated on 10.

Valuation

Metric LMT TDG Aerospace & Defense median
P/E 19.07 33.87 33.00
P/S 1.55 6.40 3.63
P/B 13.64 n/m 3.24
Price to free cash flow 13.70 33.25 34.01
EV/EBITDA 12.59 18.69 18.69
EV/Sales 1.77 9.40 3.94
Earnings yield 5.24% 2.95% 1.31%
Free cash flow yield 7.30% 3.01% 0.00%

Profitability

Metric LMT TDG Aerospace & Defense median
Gross margin 11.80% 59.56% 25.48%
Operating margin 11.88% 46.04% 4.54%
Net margin 8.16% 19.09% 2.22%
Free cash flow margin 11.33% 19.25% 0.00%
Return on equity 89.16% (25.83%) 6.43%
Return on assets 10.36% 7.73% 2.70%
Return on invested capital 22.42% 14.27% 1.56%

Growth

Metric LMT TDG Aerospace & Defense median
Revenue growth (TTM) 7.20% 16.66% 18.43%
EPS growth (last fiscal year) (3.68%) 25.21% —
Revenue growth, 5-year CAGR 2.79% 11.59% 9.62%
Net income growth, 5-year CAGR (5.99%) 29.42% 0.00%

Health

Metric LMT TDG Aerospace & Defense median
Debt to equity 2.34 (3.34) 0.24
Current ratio 1.19 3.02 2.72
Net debt to EBITDA 1.87 5.85 1.12

Dividend

Metric LMT TDG Aerospace & Defense median
Dividend yield 2.99% — 1.04%
Payout ratio 0.43 0.00 0.00

Size

Metric LMT TDG Aerospace & Defense median
Market cap 120.73b 61.30b 2.52b

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