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 $122.9B against $62.7B — 2.0× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 34.6×. 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%). Only Lockheed Martin Corporation pays a dividend (2.50%). Across the 22 metrics below, Lockheed Martin Corporation leads on 12 and Transdigm Group Incorporated on 10.

Valuation

Metric LMT TDG Aerospace & Defense median
P/E 20.26 34.57 31.81
P/S 1.65 6.53 3.55
P/B 14.49 n/m 2.59
Price to free cash flow 14.56 33.94 31.99
EV/EBITDA 13.28 18.96 18.08
EV/Sales 1.87 9.53 3.37
Earnings yield 4.94% 2.89% 1.38%
Free cash flow yield 6.87% 2.95% 0.21%

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% 1.43%
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% 24.27%
Revenue growth, 5-year CAGR 2.79% 11.59% 9.73%
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 2.50% 0.00% 0.90%
Payout ratio 0.51 0.00 0.32

Size

Metric LMT TDG Aerospace & Defense median
Market cap 122.93b 62.70b 2.19b

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