HEI vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HEI and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HEI | TDG |
|---|---|---|
| Company Name | HEICO Corporation | TransDigm Group Incorporated |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 43.64 billion USD | 76.07 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | March 15, 2006 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HEI 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 | HEI | TDG |
|---|---|---|
| 5-Day Price Return | -5.49% | 4.01% |
| 13-Week Price Return | 0.88% | -3.41% |
| 26-Week Price Return | 15.34% | -5.31% |
| 52-Week Price Return | 12.21% | -1.64% |
| Month-to-Date Return | -2.17% | 2.45% |
| Year-to-Date Return | 30.76% | 5.79% |
| 10-Day Avg. Volume | 0.33M | 0.34M |
| 3-Month Avg. Volume | 0.35M | 0.33M |
| 3-Month Volatility | 27.17% | 25.35% |
| Beta | 1.04 | 0.92 |
Profitability
Return on Equity (TTM)
HEI
16.57%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
HEI’s Return on Equity of 16.57% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
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)
HEI
14.96%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
A Net Profit Margin of 14.96% places HEI in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.
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)
HEI
22.35%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
HEI’s Operating Profit Margin of 22.35% 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.
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 | HEI | TDG |
|---|---|---|
| Return on Equity (TTM) | 16.57% | 37.11% |
| Return on Assets (TTM) | 8.00% | 9.32% |
| Net Profit Margin (TTM) | 14.96% | 23.49% |
| Operating Profit Margin (TTM) | 22.35% | 47.04% |
| Gross Profit Margin (TTM) | 39.51% | 60.61% |
Financial Strength
Current Ratio (MRQ)
HEI
3.35
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
HEI’s Current Ratio of 3.35 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
3.21
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)
HEI
0.59
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
HEI’s Debt-to-Equity Ratio of 0.59 is typical for the Aerospace & Defense 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
- 1.89
- 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)
HEI
5.54
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
HEI’s Interest Coverage Ratio of 5.54 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
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 | HEI | TDG |
|---|---|---|
| Current Ratio (MRQ) | 3.35 | 3.21 |
| Quick Ratio (MRQ) | 1.40 | 2.16 |
| Debt-to-Equity Ratio (MRQ) | 0.59 | 5.41 |
| Interest Coverage Ratio (TTM) | 5.54 | 2.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HEI
0.08%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
HEI’s Dividend Yield of 0.08% is in the lower quartile for the Aerospace & Defense industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
TDG
12.76%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
TDG’s Dividend Yield of 12.76% 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)
HEI
9.26%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
HEI’s Dividend Payout Ratio of 9.26% is within the typical range for the Aerospace & Defense 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 | HEI | TDG |
|---|---|---|
| Dividend Yield (TTM) | 0.08% | 12.76% |
| Dividend Payout Ratio (TTM) | 9.26% | 872.98% |
Valuation
Price-to-Earnings Ratio (TTM)
HEI
59.07
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
A P/E Ratio of 59.07 places HEI in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TDG
36.37
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
TDG’s P/E Ratio of 36.37 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)
HEI
8.84
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
With a P/S Ratio of 8.84, HEI 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.
TDG
8.54
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
With a P/S Ratio of 8.54, 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)
HEI
9.58
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
HEI’s P/B Ratio of 9.58 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
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 | HEI | TDG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 59.07 | 36.37 |
| Price-to-Sales Ratio (TTM) | 8.84 | 8.54 |
| Price-to-Book Ratio (MRQ) | 9.58 | 10.13 |
| Price-to-Free Cash Flow Ratio (TTM) | 48.45 | 41.54 |