AME vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AME 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 AME’s 42.53 billion USD, highlighting its more substantial market valuation.
With betas of 1.11 for AME and 1.05 for TDG, both stocks show similar sensitivity to overall market movements.
| Symbol | AME | TDG |
|---|---|---|
| Company Name | AMETEK, Inc. | TransDigm Group Incorporated |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Aerospace & Defense |
| CEO | David A. Zapico | Kevin M. Stein |
| Price | 184.19 USD | 1,522.98 USD |
| Market Cap | 42.53 billion USD | 85.54 billion USD |
| Beta | 1.11 | 1.05 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 1984 | March 15, 2006 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AME 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.
Profitability
Return on Equity
AME
14.75%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
AME’s Return on Equity of 14.75% is on par with the norm for the Industrial - Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
Return on Invested Capital
AME
11.22%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
AME’s Return on Invested Capital of 11.22% is in line with the norm for the Industrial - Machinery industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
Net Profit Margin
AME
20.43%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
A Net Profit Margin of 20.43% places AME in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
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.
Operating Profit Margin
AME
26.20%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
An Operating Profit Margin of 26.20% places AME in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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.
Profitability at a Glance
| Symbol | AME | TDG |
|---|---|---|
| Return on Equity (TTM) | 14.75% | -36.67% |
| Return on Assets (TTM) | 9.52% | 8.68% |
| Return on Invested Capital (TTM) | 11.22% | 14.56% |
| Net Profit Margin (TTM) | 20.43% | 22.67% |
| Operating Profit Margin (TTM) | 26.20% | 46.02% |
| Gross Profit Margin (TTM) | 36.18% | 58.98% |
Financial Strength
Current Ratio
AME
1.41
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AME’s Current Ratio of 1.41 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
Debt-to-Equity Ratio
AME
0.19
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
AME’s Debt-to-Equity Ratio of 0.19 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
Interest Coverage Ratio
AME
23.38
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
AME’s Interest Coverage Ratio of 23.38 is in the upper quartile for the Industrial - Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
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.
Financial Strength at a Glance
| Symbol | AME | TDG |
|---|---|---|
| Current Ratio (TTM) | 1.41 | 3.09 |
| Quick Ratio (TTM) | 0.86 | 2.12 |
| Debt-to-Equity Ratio (TTM) | 0.19 | -4.42 |
| Debt-to-Asset Ratio (TTM) | 0.13 | 1.14 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.73 | 5.34 |
| Interest Coverage Ratio (TTM) | 23.38 | 2.73 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AME and TDG. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AME
0.64%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Yield of 0.64% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AME
18.74%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Payout Ratio of 18.74% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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.
Dividend at a Glance
| Symbol | AME | TDG |
|---|---|---|
| Dividend Yield (TTM) | 0.64% | 4.92% |
| Dividend Payout Ratio (TTM) | 18.74% | 231.25% |
Valuation
Price-to-Earnings Ratio
AME
29.98
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
AME’s P/E Ratio of 29.98 is within the middle range for the Industrial - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
Forward P/E to Growth Ratio
AME
4.01
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
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.
Price-to-Sales Ratio
AME
6.13
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AME’s P/S Ratio of 6.13 is in the upper echelon for the Industrial - Machinery 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.
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.
Price-to-Book Ratio
AME
4.26
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AME’s P/B Ratio of 4.26 is within the conventional range for the Industrial - Machinery 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.
Valuation at a Glance
| Symbol | AME | TDG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.98 | 46.55 |
| Forward PEG Ratio (TTM) | 4.01 | 3.03 |
| Price-to-Sales Ratio (P/S, TTM) | 6.13 | 10.20 |
| Price-to-Book Ratio (P/B, TTM) | 4.26 | -15.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.82 | 45.00 |
| EV-to-EBITDA (TTM) | 21.00 | 25.52 |
| EV-to-Sales (TTM) | 6.35 | 12.90 |