Rocket Lab Corporation (RKLB) vs Transdigm Group Incorporated (TDG)

Rocket Lab Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. Transdigm Group Incorporated is the larger, with a market value of $61.3B against $44.8B — 1.4× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Transdigm Group Incorporated trades at 33.9×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 16.7%. Transdigm Group Incorporated has the higher net margin (19.1% vs −21.5%) and the higher return on invested capital (14.3% vs −11.5%). Across the 18 metrics below, Transdigm Group Incorporated leads on 13 and Rocket Lab Corporation on 5.

Valuation

Metric RKLB TDG Aerospace & Defense median
P/E n/m 33.87 33.00
P/S 60.54 6.40 3.63
P/B 13.33 n/m 3.24
Price to free cash flow n/m 33.25 34.01
EV/EBITDA n/m 18.69 18.69
EV/Sales 57.61 9.40 3.94
Earnings yield (0.37%) 2.95% 1.31%
Free cash flow yield (0.79%) 3.01% 0.00%

Profitability

Metric RKLB TDG Aerospace & Defense median
Gross margin 37.26% 59.56% 25.48%
Operating margin (29.06%) 46.04% 4.54%
Net margin (21.51%) 19.09% 2.22%
Free cash flow margin (48.13%) 19.25% 0.00%
Return on equity (7.92%) (25.83%) 6.43%
Return on assets (5.76%) 7.73% 2.70%
Return on invested capital (11.46%) 14.27% 1.56%

Growth

Metric RKLB TDG Aerospace & Defense median
Revenue growth (TTM) 52.53% 16.66% 18.43%
EPS growth (last fiscal year) 2.63% 25.21% —
Revenue growth, 5-year CAGR 76.47% 11.59% 9.62%
Net income growth, 5-year CAGR 0.00% 29.42% 0.00%

Health

Metric RKLB TDG Aerospace & Defense median
Debt to equity 0.01 (3.34) 0.24
Current ratio 5.48 3.02 2.72
Net debt to EBITDA 4.66 5.85 1.12

Dividend

Metric RKLB TDG Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric RKLB TDG Aerospace & Defense median
Market cap 44.78b 61.30b 2.52b

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