CNH vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CNH and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CNH | TDG |
|---|---|---|
| Company Name | CNH Industrial N.V. | TransDigm Group Incorporated |
| Country | United Kingdom | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Aerospace & Defense |
| Market Capitalization | 12.12 billion USD | 75.92 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 30, 2013 | March 15, 2006 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CNH 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.
Historical Performance at a Glance
| Symbol | CNH | TDG |
|---|---|---|
| 5-Day Price Return | -6.47% | -0.95% |
| 13-Week Price Return | -21.47% | -4.69% |
| 26-Week Price Return | -31.24% | -7.79% |
| 52-Week Price Return | -15.09% | 6.18% |
| Month-to-Date Return | -10.39% | 1.48% |
| Year-to-Date Return | -17.03% | 4.78% |
| 10-Day Avg. Volume | 15.88M | 0.37M |
| 3-Month Avg. Volume | 12.79M | 0.33M |
| 3-Month Volatility | 28.61% | 25.31% |
| Beta | 1.31 | 0.90 |
Profitability
Return on Equity (TTM)
CNH
7.72%
Machinery Industry
- Max
- 30.85%
- Q3
- 19.99%
- Median
- 12.37%
- Q1
- 8.44%
- Min
- -7.69%
CNH’s Return on Equity of 7.72% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
TDG
37.11%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CNH
3.35%
Machinery Industry
- Max
- 19.28%
- Q3
- 10.99%
- Median
- 7.89%
- Q1
- 5.16%
- Min
- -1.46%
Falling into the lower quartile for the Machinery industry, CNH’s Net Profit Margin of 3.35% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
TDG
23.49%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
TDG’s Net Profit Margin of 23.49% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
CNH
16.46%
Machinery Industry
- Max
- 27.20%
- Q3
- 15.91%
- Median
- 11.33%
- Q1
- 7.73%
- Min
- 0.23%
An Operating Profit Margin of 16.46% places CNH in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TDG
47.04%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
TDG’s Operating Profit Margin of 47.04% 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 | CNH | TDG |
|---|---|---|
| Return on Equity (TTM) | 7.72% | 37.11% |
| Return on Assets (TTM) | 1.39% | 9.32% |
| Net Profit Margin (TTM) | 3.35% | 23.49% |
| Operating Profit Margin (TTM) | 16.46% | 47.04% |
| Gross Profit Margin (TTM) | 32.19% | 60.61% |
Financial Strength
Current Ratio (MRQ)
CNH
1.69
Machinery Industry
- Max
- 3.27
- Q3
- 2.16
- Median
- 1.75
- Q1
- 1.32
- Min
- 0.70
CNH’s Current Ratio of 1.69 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
TDG
3.21
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
TDG’s Current Ratio of 3.21 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.
Debt-to-Equity Ratio (MRQ)
CNH
3.51
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.45
- Q1
- 0.23
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.51, CNH operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
TDG
5.41
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
CNH
1.93
Machinery Industry
- Max
- 67.55
- Q3
- 36.46
- Median
- 13.55
- Q1
- 7.73
- Min
- -1.43
In the lower quartile for the Machinery industry, CNH’s Interest Coverage Ratio of 1.93 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
TDG
2.67
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
TDG’s Interest Coverage Ratio of 2.67 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 | CNH | TDG |
|---|---|---|
| Current Ratio (MRQ) | 1.69 | 3.21 |
| Quick Ratio (MRQ) | 0.58 | 2.16 |
| Debt-to-Equity Ratio (MRQ) | 3.51 | 5.41 |
| Interest Coverage Ratio (TTM) | 1.93 | 2.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CNH
2.73%
Machinery Industry
- Max
- 4.98%
- Q3
- 2.83%
- Median
- 1.89%
- Q1
- 1.17%
- Min
- 0.00%
CNH’s Dividend Yield of 2.73% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
TDG
12.75%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
TDG’s Dividend Yield of 12.75% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
CNH
55.11%
Machinery Industry
- Max
- 209.29%
- Q3
- 102.41%
- Median
- 62.34%
- Q1
- 29.36%
- Min
- 0.00%
CNH’s Dividend Payout Ratio of 55.11% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TDG
872.98%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
At 872.98%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | CNH | TDG |
|---|---|---|
| Dividend Yield (TTM) | 2.73% | 12.75% |
| Dividend Payout Ratio (TTM) | 55.11% | 872.98% |
Valuation
Price-to-Earnings Ratio (TTM)
CNH
20.21
Machinery Industry
- Max
- 46.28
- Q3
- 29.52
- Median
- 24.18
- Q1
- 16.92
- Min
- 7.99
CNH’s P/E Ratio of 20.21 is within the middle range for the 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
36.42
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
TDG’s P/E Ratio of 36.42 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.
Price-to-Sales Ratio (TTM)
CNH
0.68
Machinery Industry
- Max
- 5.25
- Q3
- 2.82
- Median
- 1.74
- Q1
- 0.99
- Min
- 0.27
In the lower quartile for the Machinery industry, CNH’s P/S Ratio of 0.68 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
TDG
8.55
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
With a P/S Ratio of 8.55, TDG trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
CNH
1.76
Machinery Industry
- Max
- 7.18
- Q3
- 4.18
- Median
- 2.71
- Q1
- 1.54
- Min
- 0.52
CNH’s P/B Ratio of 1.76 is within the conventional range for the 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
10.13
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | CNH | TDG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.21 | 36.42 |
| Price-to-Sales Ratio (TTM) | 0.68 | 8.55 |
| Price-to-Book Ratio (MRQ) | 1.76 | 10.13 |
| Price-to-Free Cash Flow Ratio (TTM) | 5.68 | 41.60 |