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 $253.9B against $61.3B — 4.1× the size. RTX Corporation trades at the lower P/E: 32.9× against 33.9×. 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%). 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 32.94 33.87 33.00
P/S 2.74 6.40 3.63
P/B 3.76 n/m 3.24
Price to free cash flow 23.29 33.25 34.01
EV/EBITDA 19.14 18.69 18.69
EV/Sales 3.05 9.40 3.94
Earnings yield 3.04% 2.95% 1.31%
Free cash flow yield 4.29% 3.01% 0.00%

Profitability

Metric RTX TDG Aerospace & Defense median
Gross margin 20.35% 59.56% 25.48%
Operating margin 11.21% 46.04% 4.54%
Net margin 8.28% 19.09% 2.22%
Free cash flow margin 11.75% 19.25% 0.00%
Return on equity 11.70% (25.83%) 6.43%
Return on assets 4.54% 7.73% 2.70%
Return on invested capital 6.74% 14.27% 1.56%

Growth

Metric RTX TDG Aerospace & Defense median
Revenue growth (TTM) 11.84% 16.66% 18.43%
EPS growth (last fiscal year) 39.72% 25.21% —
Revenue growth, 5-year CAGR 9.38% 11.59% 9.62%
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) 0.24
Current ratio 1.01 3.02 2.72
Net debt to EBITDA 2.23 5.85 1.12

Dividend

Metric RTX TDG Aerospace & Defense median
Dividend yield 2.71% — 1.04%
Payout ratio 0.59 0.00 0.00

Size

Metric RTX TDG Aerospace & Defense median
Market cap 253.92b 61.30b 2.52b

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