GWW vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GWW and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GWW | TDG |
|---|---|---|
| Company Name | W.W. Grainger, Inc. | TransDigm Group Incorporated |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Trading Companies & Distributors | Aerospace & Defense |
| Market Capitalization | 46.26 billion USD | 72.46 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | March 15, 2006 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GWW 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 | GWW | TDG |
|---|---|---|
| 5-Day Price Return | 1.41% | 0.16% |
| 13-Week Price Return | -7.47% | -15.76% |
| 26-Week Price Return | -0.64% | -5.69% |
| 52-Week Price Return | -5.44% | -5.21% |
| Month-to-Date Return | 1.49% | -2.44% |
| Year-to-Date Return | -8.24% | 1.47% |
| 10-Day Avg. Volume | 0.25M | 0.25M |
| 3-Month Avg. Volume | 0.30M | 0.31M |
| 3-Month Volatility | 27.61% | 31.98% |
| Beta | 1.13 | 0.94 |
Profitability
Return on Equity (TTM)
GWW
54.86%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.66%
- Median
- 13.72%
- Q1
- 9.74%
- Min
- -0.34%
GWW’s Return on Equity of 54.86% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors 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
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- 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.
Net Profit Margin (TTM)
GWW
10.99%
Trading Companies & Distributors Industry
- Max
- 16.11%
- Q3
- 9.48%
- Median
- 5.89%
- Q1
- 3.68%
- Min
- -1.09%
A Net Profit Margin of 10.99% places GWW in the upper quartile for the Trading Companies & Distributors industry, signifying strong profitability and more effective cost management than most of its peers.
TDG
22.52%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
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.
Operating Profit Margin (TTM)
GWW
15.27%
Trading Companies & Distributors Industry
- Max
- 26.26%
- Q3
- 14.59%
- Median
- 7.05%
- Q1
- 4.94%
- Min
- -8.06%
An Operating Profit Margin of 15.27% places GWW in the upper quartile for the Trading Companies & Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TDG
45.94%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
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.
Profitability at a Glance
| Symbol | GWW | TDG |
|---|---|---|
| Return on Equity (TTM) | 54.86% | 37.11% |
| Return on Assets (TTM) | 21.63% | 8.43% |
| Net Profit Margin (TTM) | 10.99% | 22.52% |
| Operating Profit Margin (TTM) | 15.27% | 45.94% |
| Gross Profit Margin (TTM) | 39.25% | 60.12% |
Financial Strength
Current Ratio (MRQ)
GWW
2.82
Trading Companies & Distributors Industry
- Max
- 3.32
- Q3
- 2.27
- Median
- 1.60
- Q1
- 1.41
- Min
- 0.26
GWW’s Current Ratio of 2.82 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
TDG
3.13
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
TDG’s Current Ratio of 3.13 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)
GWW
0.64
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.24
- Median
- 0.79
- Q1
- 0.61
- Min
- 0.01
GWW’s Debt-to-Equity Ratio of 0.64 is typical for the Trading Companies & Distributors 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
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- 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)
GWW
34.56
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.67
- Q1
- 2.04
- Min
- -1.67
With an Interest Coverage Ratio of 34.56, GWW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
TDG
2.72
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- 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.
Financial Strength at a Glance
| Symbol | GWW | TDG |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 3.13 |
| Quick Ratio (MRQ) | 1.53 | 2.07 |
| Debt-to-Equity Ratio (MRQ) | 0.64 | 5.41 |
| Interest Coverage Ratio (TTM) | 34.56 | 2.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GWW
0.97%
Trading Companies & Distributors Industry
- Max
- 5.25%
- Q3
- 2.95%
- Median
- 2.06%
- Q1
- 1.11%
- Min
- 0.00%
GWW’s Dividend Yield of 0.97% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
TDG
6.09%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
TDG’s Dividend Yield of 6.09% 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)
GWW
22.89%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 71.34%
- Median
- 47.49%
- Q1
- 22.56%
- Min
- 0.00%
GWW’s Dividend Payout Ratio of 22.89% is within the typical range for the Trading Companies & Distributors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TDG
891.68%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- 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.
Dividend at a Glance
| Symbol | GWW | TDG |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 6.09% |
| Dividend Payout Ratio (TTM) | 22.89% | 891.68% |
Valuation
Price-to-Earnings Ratio (TTM)
GWW
23.66
Trading Companies & Distributors Industry
- Max
- 42.69
- Q3
- 25.21
- Median
- 16.99
- Q1
- 13.13
- Min
- 5.35
GWW’s P/E Ratio of 23.66 is within the middle range for the Trading Companies & Distributors 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
37.37
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
TDG’s P/E Ratio of 37.37 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)
GWW
2.60
Trading Companies & Distributors Industry
- Max
- 4.90
- Q3
- 2.71
- Median
- 1.06
- Q1
- 0.70
- Min
- 0.30
GWW’s P/S Ratio of 2.60 aligns with the market consensus for the Trading Companies & Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TDG
8.42
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
TDG’s P/S Ratio of 8.42 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 (MRQ)
GWW
13.60
Trading Companies & Distributors Industry
- Max
- 7.55
- Q3
- 4.63
- Median
- 2.09
- Q1
- 1.30
- Min
- 0.31
At 13.60, GWW’s P/B Ratio is at an extreme premium to the Trading Companies & Distributors 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
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
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 | GWW | TDG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.66 | 37.37 |
| Price-to-Sales Ratio (TTM) | 2.60 | 8.42 |
| Price-to-Book Ratio (MRQ) | 13.60 | 10.13 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.11 | 37.88 |