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 $133.1B against $65.7B — 2.0× the size. Lockheed Martin Corporation trades at the lower P/E: 20.4× against 36.1×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 7.86%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.23%) and the lower return on invested capital (14.3% vs 23.7%). Only Lockheed Martin Corporation pays a dividend (2.39%). 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 20.43 36.15 28.48
P/S 1.68 6.83 2.95
P/B 13.23 n/m 2.68
Price to free cash flow 15.89 35.49 31.70
EV/EBITDA 13.44 19.55 16.85
EV/Sales 1.87 9.83 2.74
Earnings yield 4.89% 2.77% 0.89%
Free cash flow yield 6.30% 2.82% 0.00%

Profitability

Metric LMT TDG Aerospace & Defense median
Gross margin 11.73% 59.56% 26.41%
Operating margin 11.78% 46.04% 3.69%
Net margin 8.23% 19.09% 2.74%
Free cash flow margin 10.59% 19.25% 0.00%
Return on equity 80.19% (25.83%) 4.44%
Return on assets 10.44% 7.73% 1.90%
Return on invested capital 23.67% 14.27% 0.26%

Growth

Metric LMT TDG Aerospace & Defense median
Revenue growth (TTM) 7.86% 16.66% 18.03%
EPS growth (last fiscal year) (3.68%) 25.21% 24.80%
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 2.04 (3.34) 0.20
Current ratio 1.26 3.02 2.85
Net debt to EBITDA 1.87 5.85 1.29

Dividend

Metric LMT TDG Aerospace & Defense median
Dividend yield 2.39% 0.00% 0.91%
Payout ratio 0.49 0.00 0.30

Size

Metric LMT TDG Aerospace & Defense median
Market cap 133.10b 65.73b 1.78b

Compare with another peer

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