Seek Returns logo

ACHR vs. TDG: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ACHR and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

TDG’s market capitalization of 85.54 billion USD is significantly greater than ACHR’s 6.45 billion USD, highlighting its more substantial market valuation.

ACHR’s beta of 3.13 points to significantly higher volatility compared to TDG (beta: 1.05), suggesting ACHR has greater potential for both gains and losses relative to market movements.

SymbolACHRTDG
Company NameArcher Aviation Inc.TransDigm Group Incorporated
CountryUSUS
SectorIndustrialsIndustrials
IndustryAerospace & DefenseAerospace & Defense
CEOAdam D. GoldsteinKevin M. Stein
Price10.17 USD1,522.98 USD
Market Cap6.45 billion USD85.54 billion USD
Beta3.131.05
ExchangeNYSENYSE
IPO DateDecember 18, 2020March 15, 2006
ADRNoNo

Historical Performance

This chart compares the performance of ACHR and TDG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACHR vs. TDG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACHR

-80.09%

Aerospace & Defense Industry

Max
42.57%
Q3
16.67%
Median
8.39%
Q1
-0.77%
Min
-23.36%

ACHR has a negative Return on Equity of -80.09%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

TDG

-36.67%

Aerospace & Defense Industry

Max
42.57%
Q3
16.67%
Median
8.39%
Q1
-0.77%
Min
-23.36%

TDG has a negative Return on Equity of -36.67%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ACHR vs. TDG: A comparison of their ROE against the Aerospace & Defense industry benchmark.

Return on Invested Capital

ACHR

-44.42%

Aerospace & Defense Industry

Max
23.42%
Q3
8.86%
Median
5.47%
Q1
-5.60%
Min
-22.46%

ACHR has a negative Return on Invested Capital of -44.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

TDG

14.56%

Aerospace & Defense Industry

Max
23.42%
Q3
8.86%
Median
5.47%
Q1
-5.60%
Min
-22.46%

In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Invested Capital of 14.56% signifies a highly effective use of its capital to generate profits when compared to its peers.

ACHR vs. TDG: A comparison of their ROIC against the Aerospace & Defense industry benchmark.

Net Profit Margin

ACHR

--

Aerospace & Defense Industry

Max
22.67%
Q3
8.04%
Median
4.95%
Q1
-5.07%
Min
-16.58%

Net Profit Margin data for ACHR is currently unavailable.

TDG

22.67%

Aerospace & Defense Industry

Max
22.67%
Q3
8.04%
Median
4.95%
Q1
-5.07%
Min
-16.58%

A Net Profit Margin of 22.67% places TDG in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

ACHR vs. TDG: A comparison of their Net Profit Margin against the Aerospace & Defense industry benchmark.

Operating Profit Margin

ACHR

--

Aerospace & Defense Industry

Max
22.01%
Q3
11.49%
Median
8.96%
Q1
3.77%
Min
-4.96%

Operating Profit Margin data for ACHR is currently unavailable.

TDG

46.02%

Aerospace & Defense Industry

Max
22.01%
Q3
11.49%
Median
8.96%
Q1
3.77%
Min
-4.96%

TDG’s Operating Profit Margin of 46.02% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ACHR vs. TDG: A comparison of their Operating Margin against the Aerospace & Defense industry benchmark.

Profitability at a Glance

SymbolACHRTDG
Return on Equity (TTM)-80.09%-36.67%
Return on Assets (TTM)-42.29%8.68%
Return on Invested Capital (TTM)-44.42%14.56%
Net Profit Margin (TTM)--22.67%
Operating Profit Margin (TTM)--46.02%
Gross Profit Margin (TTM)--58.98%

Financial Strength

Current Ratio

ACHR

15.80

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

ACHR’s Current Ratio of 15.80 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

TDG

3.09

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

TDG’s Current Ratio of 3.09 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

ACHR vs. TDG: A comparison of their Current Ratio against the Aerospace & Defense industry benchmark.

Debt-to-Equity Ratio

ACHR

0.08

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

Falling into the lower quartile for the Aerospace & Defense industry, ACHR’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

TDG

-4.42

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

TDG has a Debt-to-Equity Ratio of -4.42, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

ACHR vs. TDG: A comparison of their D/E Ratio against the Aerospace & Defense industry benchmark.

Interest Coverage Ratio

ACHR

--

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

Interest Coverage Ratio data for ACHR is currently unavailable.

TDG

2.73

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

TDG’s Interest Coverage Ratio of 2.73 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

ACHR vs. TDG: A comparison of their Interest Coverage against the Aerospace & Defense industry benchmark.

Financial Strength at a Glance

SymbolACHRTDG
Current Ratio (TTM)15.803.09
Quick Ratio (TTM)15.802.12
Debt-to-Equity Ratio (TTM)0.08-4.42
Debt-to-Asset Ratio (TTM)0.061.14
Net Debt-to-EBITDA Ratio (TTM)1.895.34
Interest Coverage Ratio (TTM)--2.73

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACHR and TDG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACHR vs. TDG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACHR vs. TDG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACHR vs. TDG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACHR

0.00%

Aerospace & Defense Industry

Max
6.00%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

ACHR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

TDG

4.92%

Aerospace & Defense Industry

Max
6.00%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 4.92%, TDG offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.

ACHR vs. TDG: A comparison of their Dividend Yield against the Aerospace & Defense industry benchmark.

Dividend Payout Ratio

ACHR

0.00%

Aerospace & Defense Industry

Max
172.02%
Q3
32.47%
Median
0.00%
Q1
0.00%
Min
0.00%

ACHR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

TDG

231.25%

Aerospace & Defense Industry

Max
172.02%
Q3
32.47%
Median
0.00%
Q1
0.00%
Min
0.00%

TDG’s Dividend Payout Ratio of 231.25% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

ACHR vs. TDG: A comparison of their Payout Ratio against the Aerospace & Defense industry benchmark.

Dividend at a Glance

SymbolACHRTDG
Dividend Yield (TTM)0.00%4.92%
Dividend Payout Ratio (TTM)0.00%231.25%

Valuation

Price-to-Earnings Ratio

ACHR

-7.87

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

ACHR has a negative P/E Ratio of -7.87. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

TDG

46.55

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

TDG’s P/E Ratio of 46.55 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ACHR vs. TDG: A comparison of their P/E Ratio against the Aerospace & Defense industry benchmark.

Forward P/E to Growth Ratio

ACHR

0.21

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

In the lower quartile for the Aerospace & Defense industry, ACHR’s Forward PEG Ratio of 0.21 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.

TDG

3.03

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

TDG’s Forward PEG Ratio of 3.03 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ACHR vs. TDG: A comparison of their Forward PEG Ratio against the Aerospace & Defense industry benchmark.

Price-to-Sales Ratio

ACHR

--

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

P/S Ratio data for ACHR is currently unavailable.

TDG

10.20

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

TDG’s P/S Ratio of 10.20 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ACHR vs. TDG: A comparison of their P/S Ratio against the Aerospace & Defense industry benchmark.

Price-to-Book Ratio

ACHR

4.00

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

ACHR’s P/B Ratio of 4.00 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TDG

-15.60

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

TDG has a negative P/B Ratio of -15.60, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

ACHR vs. TDG: A comparison of their P/B Ratio against the Aerospace & Defense industry benchmark.

Valuation at a Glance

SymbolACHRTDG
Price-to-Earnings Ratio (P/E, TTM)-7.8746.55
Forward PEG Ratio (TTM)0.213.03
Price-to-Sales Ratio (P/S, TTM)--10.20
Price-to-Book Ratio (P/B, TTM)4.00-15.60
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-14.2845.00
EV-to-EBITDA (TTM)-10.8925.52
EV-to-Sales (TTM)--12.90