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

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

Company Profile

SymbolGETDG
Company NameGE AerospaceTransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryIndustrial ConglomeratesAerospace & Defense
Market Capitalization285.11 billion USD80.34 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GE 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.

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

Historical Performance at a Glance

SymbolGETDG
5-Day Price Return-1.16%-0.23%
13-Week Price Return22.80%0.61%
26-Week Price Return30.48%9.73%
52-Week Price Return61.12%15.63%
Month-to-Date Return-0.82%-11.36%
Year-to-Date Return61.20%12.51%
10-Day Avg. Volume4.24M0.52M
3-Month Avg. Volume6.65M0.31M
3-Month Volatility24.29%29.88%
Beta1.531.03

Profitability

Return on Equity (TTM)

GE

40.51%

Industrial Conglomerates Industry

Max
21.93%
Q3
14.23%
Median
7.81%
Q1
5.91%
Min
-3.58%

GE’s Return on Equity of 40.51% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

TDG

37.11%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

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.

GE vs. TDG: A comparison of their Return on Equity (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

GE

18.64%

Industrial Conglomerates Industry

Max
18.70%
Q3
12.58%
Median
9.26%
Q1
3.87%
Min
-2.26%

A Net Profit Margin of 18.64% places GE in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.

TDG

22.52%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

TDG’s Net Profit Margin of 22.52% 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.

GE vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

GE

15.53%

Industrial Conglomerates Industry

Max
25.69%
Q3
17.03%
Median
12.85%
Q1
8.81%
Min
-0.73%

GE’s Operating Profit Margin of 15.53% is around the midpoint for the Industrial Conglomerates industry, indicating that its efficiency in managing core business operations is typical for the sector.

TDG

45.94%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

TDG’s Operating Profit Margin of 45.94% 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.

GE vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolGETDG
Return on Equity (TTM)40.51%37.11%
Return on Assets (TTM)6.22%8.43%
Net Profit Margin (TTM)18.64%22.52%
Operating Profit Margin (TTM)15.53%45.94%
Gross Profit Margin (TTM)35.97%60.12%

Financial Strength

Current Ratio (MRQ)

GE

1.04

Industrial Conglomerates Industry

Max
2.19
Q3
1.64
Median
1.38
Q1
1.13
Min
0.61

GE’s Current Ratio of 1.04 falls into the lower quartile for the Industrial Conglomerates industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

TDG

3.13

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

TDG’s Current Ratio of 3.13 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.

GE vs. TDG: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GE

0.99

Industrial Conglomerates Industry

Max
2.27
Q3
1.47
Median
0.99
Q1
0.66
Min
0.21

GE’s Debt-to-Equity Ratio of 0.99 is typical for the Industrial Conglomerates industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TDG

5.41

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

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.

GE vs. TDG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

GE

5.01

Industrial Conglomerates Industry

Max
11.17
Q3
8.02
Median
5.88
Q1
2.73
Min
-2.15

GE’s Interest Coverage Ratio of 5.01 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.

TDG

2.72

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

TDG’s Interest Coverage Ratio of 2.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

GE vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolGETDG
Current Ratio (MRQ)1.043.13
Quick Ratio (MRQ)0.732.07
Debt-to-Equity Ratio (MRQ)0.995.41
Interest Coverage Ratio (TTM)5.012.72

Growth

Revenue Growth

GE vs. TDG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GE vs. TDG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GE

0.44%

Industrial Conglomerates Industry

Max
10.17%
Q3
5.53%
Median
3.14%
Q1
1.88%
Min
0.00%

GE’s Dividend Yield of 0.44% is in the lower quartile for the Industrial Conglomerates industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TDG

5.52%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

TDG’s Dividend Yield of 5.52% 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.

GE vs. TDG: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

GE

16.78%

Industrial Conglomerates Industry

Max
181.91%
Q3
95.57%
Median
50.60%
Q1
35.01%
Min
1.76%

GE’s Dividend Payout Ratio of 16.78% is in the lower quartile for the Industrial Conglomerates industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

TDG

891.68%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

At 891.68%, 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.

GE vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolGETDG
Dividend Yield (TTM)0.44%5.52%
Dividend Payout Ratio (TTM)16.78%891.68%

Valuation

Price-to-Earnings Ratio (TTM)

GE

38.26

Industrial Conglomerates Industry

Max
36.98
Q3
22.09
Median
12.18
Q1
8.93
Min
5.63

At 38.26, GE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Industrial Conglomerates 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

41.23

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

TDG’s P/E Ratio of 41.23 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.

GE vs. TDG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

GE

7.13

Industrial Conglomerates Industry

Max
3.60
Q3
2.10
Median
0.68
Q1
0.42
Min
0.11

With a P/S Ratio of 7.13, GE trades at a valuation that eclipses even the highest in the Industrial Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

TDG

9.29

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

With a P/S Ratio of 9.29, 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.

GE vs. TDG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

GE

14.26

Industrial Conglomerates Industry

Max
4.89
Q3
2.51
Median
1.06
Q1
0.60
Min
0.27

At 14.26, GE’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

TDG

10.13

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

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.

GE vs. TDG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolGETDG
Price-to-Earnings Ratio (TTM)38.2641.23
Price-to-Sales Ratio (TTM)7.139.29
Price-to-Book Ratio (MRQ)14.2610.13
Price-to-Free Cash Flow Ratio (TTM)54.0441.79