AVAV vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV 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 AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.
With betas of 0.81 for AVAV and 1.05 for TDG, both stocks show similar sensitivity to overall market movements.
| Symbol | AVAV | TDG |
|---|---|---|
| Company Name | AeroVironment, Inc. | TransDigm Group Incorporated |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Aerospace & Defense |
| CEO | Wahid Nawabi | Kevin M. Stein |
| Price | 246.23 USD | 1,522.98 USD |
| Market Cap | 11.24 billion USD | 85.54 billion USD |
| Beta | 0.81 | 1.05 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 23, 2007 | March 15, 2006 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV 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
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense 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
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense 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
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | AVAV | TDG |
|---|---|---|
| Return on Equity (TTM) | 5.06% | -36.67% |
| Return on Assets (TTM) | 3.89% | 8.68% |
| Return on Invested Capital (TTM) | 4.16% | 14.56% |
| Net Profit Margin (TTM) | 5.54% | 22.67% |
| Operating Profit Margin (TTM) | 5.18% | 46.02% |
| Gross Profit Margin (TTM) | 40.23% | 58.98% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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
AVAV
0.04
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, AVAV’s Debt-to-Equity Ratio of 0.04 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.
Interest Coverage Ratio
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
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 | AVAV | TDG |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 3.09 |
| Quick Ratio (TTM) | 2.69 | 2.12 |
| Debt-to-Equity Ratio (TTM) | 0.04 | -4.42 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 1.14 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 5.34 |
| Interest Coverage Ratio (TTM) | 245.75 | 2.73 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV 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
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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.
Dividend Payout Ratio
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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.
Dividend at a Glance
| Symbol | AVAV | TDG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 4.92% |
| Dividend Payout Ratio (TTM) | 0.00% | 231.25% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 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.
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
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 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.
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
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 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.
Valuation at a Glance
| Symbol | AVAV | TDG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 46.55 |
| Forward PEG Ratio (TTM) | 4.65 | 3.03 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 10.20 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | -15.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 45.00 |
| EV-to-EBITDA (TTM) | 188.22 | 25.52 |
| EV-to-Sales (TTM) | 14.26 | 12.90 |