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

Updated on August 29, 2025

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

Company Profile

Symbol	HON	TDG
Company Name	Honeywell International Inc.	TransDigm Group Incorporated
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Industrial Conglomerates	Aerospace & Defense
Market Capitalization	140.47 billion USD	78.61 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	January 2, 1962	March 15, 2006
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of HON 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.

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

Historical Performance at a Glance

Symbol	HON	TDG
5-Day Price Return	1.76%	0.14%
13-Week Price Return	-2.30%	-4.04%
26-Week Price Return	4.39%	8.13%
52-Week Price Return	8.54%	7.13%
Month-to-Date Return	-0.49%	-13.27%
Year-to-Date Return	-2.05%	10.08%
10-Day Avg. Volume	3.07M	0.33M
3-Month Avg. Volume	3.61M	0.30M
3-Month Volatility	19.31%	29.15%
Beta	1.07	1.02

Profitability

Return on Equity (TTM)

HON

32.86%

Industrial Conglomerates Industry

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

HON’s Return on Equity of 32.86% 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.

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

Net Profit Margin (TTM)

HON

14.30%

Industrial Conglomerates Industry

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

A Net Profit Margin of 14.30% places HON 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.

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

Operating Profit Margin (TTM)

HON

17.81%

Industrial Conglomerates Industry

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

An Operating Profit Margin of 17.81% places HON in the upper quartile for the Industrial Conglomerates 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: 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.

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

Profitability at a Glance

Symbol	HON	TDG
Return on Equity (TTM)	32.86%	37.11%
Return on Assets (TTM)	7.56%	8.43%
Net Profit Margin (TTM)	14.30%	22.52%
Operating Profit Margin (TTM)	17.81%	45.94%
Gross Profit Margin (TTM)	38.08%	60.12%

Financial Strength

Current Ratio (MRQ)

HON

1.29

Industrial Conglomerates Industry

Max: 2.19
Q3: 1.64
Median: 1.38
Q1: 1.13
Min: 0.61

HON’s Current Ratio of 1.29 aligns with the median group of the Industrial Conglomerates industry, indicating that its short-term liquidity is in line with its sector peers.

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.

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

Debt-to-Equity Ratio (MRQ)

HON

2.27

Industrial Conglomerates Industry

Max: 2.27
Q3: 1.47
Median: 0.99
Q1: 0.66
Min: 0.21

HON’s leverage is in the upper quartile of the Industrial Conglomerates industry, with a Debt-to-Equity Ratio of 2.27. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

HON 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)

HON

7.76

Industrial Conglomerates Industry

Max: 11.17
Q3: 8.02
Median: 5.88
Q1: 2.73
Min: -2.15

HON’s Interest Coverage Ratio of 7.76 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.

HON 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

Symbol	HON	TDG
Current Ratio (MRQ)	1.29	3.13
Quick Ratio (MRQ)	0.97	2.07
Debt-to-Equity Ratio (MRQ)	2.27	5.41
Interest Coverage Ratio (TTM)	7.76	2.72

Growth

Revenue Growth

HON 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

HON 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)

HON

2.13%

Industrial Conglomerates Industry

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

HON’s Dividend Yield of 2.13% is consistent with its peers in the Industrial Conglomerates industry, providing a dividend return that is standard for its sector.

TDG

5.58%

Aerospace & Defense Industry

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

TDG’s Dividend Yield of 5.58% 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.

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

Dividend Payout Ratio (TTM)

HON

51.34%

Industrial Conglomerates Industry

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

HON’s Dividend Payout Ratio of 51.34% is within the typical range for the Industrial Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

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

Dividend at a Glance

Symbol	HON	TDG
Dividend Yield (TTM)	2.13%	5.58%
Dividend Payout Ratio (TTM)	51.34%	891.68%

Valuation

Price-to-Earnings Ratio (TTM)

HON

24.10

Industrial Conglomerates Industry

Max: 36.98
Q3: 22.09
Median: 12.18
Q1: 8.93
Min: 5.63

A P/E Ratio of 24.10 places HON in the upper quartile for the Industrial Conglomerates industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

TDG

40.76

Aerospace & Defense Industry

Max: 65.97
Q3: 54.11
Median: 34.53
Q1: 23.66
Min: 0.00

TDG’s P/E Ratio of 40.76 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.

HON 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)

HON

3.45

Industrial Conglomerates Industry

Max: 3.60
Q3: 2.10
Median: 0.68
Q1: 0.42
Min: 0.11

HON’s P/S Ratio of 3.45 is in the upper echelon for the Industrial Conglomerates 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

9.18

Aerospace & Defense Industry

Max: 8.07
Q3: 4.49
Median: 2.42
Q1: 1.39
Min: 0.00

With a P/S Ratio of 9.18, 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.

HON 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)

HON

9.30

Industrial Conglomerates Industry

Max: 4.89
Q3: 2.51
Median: 1.06
Q1: 0.60
Min: 0.27

At 9.30, HON’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.

HON 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

Symbol	HON	TDG
Price-to-Earnings Ratio (TTM)	24.10	40.76
Price-to-Sales Ratio (TTM)	3.45	9.18
Price-to-Book Ratio (MRQ)	9.30	10.13
Price-to-Free Cash Flow Ratio (TTM)	27.73	41.32