RTX Corporation (RTX) vs Transdigm Group Incorporated (TDG)

RTX Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $269.1B against $65.0B — 4.1× the size. RTX Corporation trades at the lower P/E: 34.8× against 34.9×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 11.8%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.28%) and the higher return on invested capital (14.3% vs 6.74%). Only RTX Corporation pays a dividend (1.41%). Across the 21 metrics below, Transdigm Group Incorporated leads on 12 and RTX Corporation on 9.

Valuation

Metric RTX TDG Aerospace & Defense median
P/E 34.83 34.87 32.30
P/S 2.89 6.59 3.38
P/B 3.97 n/m 2.87
Price to free cash flow 24.63 34.24 31.68
EV/EBITDA 20.13 19.07 18.91
EV/Sales 3.20 9.59 3.33
Earnings yield 2.87% 2.87% 0.95%
Free cash flow yield 4.06% 2.92% (0.02%)

Profitability

Metric RTX TDG Aerospace & Defense median
Gross margin 20.35% 59.56% 25.48%
Operating margin 11.21% 46.04% 2.45%
Net margin 8.28% 19.09% 1.96%
Free cash flow margin 11.75% 19.25% 0.00%
Return on equity 11.70% (25.83%) 4.20%
Return on assets 4.54% 7.73% 1.29%
Return on invested capital 6.74% 14.27% 0.25%

Growth

Metric RTX TDG Aerospace & Defense median
Revenue growth (TTM) 11.84% 16.66% 18.08%
EPS growth (last fiscal year) 39.72% 25.21% 24.80%
Revenue growth, 5-year CAGR 9.38% 11.59% 9.73%
Net income growth, 5-year CAGR 0.00% 29.42% 0.00%

Health

Metric RTX TDG Aerospace & Defense median
Debt to equity 0.55 (3.34) 0.20
Current ratio 1.01 3.02 2.85
Net debt to EBITDA 2.23 5.85 1.32

Dividend

Metric RTX TDG Aerospace & Defense median
Dividend yield 1.41% 0.00% 1.00%
Payout ratio 0.50 0.00 0.32

Size

Metric RTX TDG Aerospace & Defense median
Market cap 269.08b 65.00b 2.17b

Compare with another peer

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