LECO vs. TDG: Lincoln Electric vs. TransDigm Stock Comparison
How do Lincoln Electric (LECO) and TransDigm (TDG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Lincoln Electric (LECO) and TransDigm (TDG) both fall under the Capital Goods industry group, but LECO is classified in Machinery while TDG is classified in Aerospace & Defense.
| Profile Item | LECO | TDG |
|---|---|---|
| Name | Lincoln Electric Holdings, Inc. | TransDigm Group Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Machinery | Aerospace & Defense |
| GICS Sub-Industry | Industrial Machinery & Supplies & Components | Aerospace & Defense |
| Market Capitalization | 14.91 billion USD | 66.17 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | April 7, 1994 | March 15, 2006 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LECO | TDG |
|---|---|---|
| Total Return (1Y) | 27.30% | -3.42% |
| Total Return (3Y, Annualized) | 17.31% | 14.26% |
| Total Return (5Y, Annualized) | 16.33% | 16.86% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | LECO | TDG |
|---|---|---|
| Volatility (1Y, Annualized) | 31.13% | 28.03% |
| Beta (5Y) | 1.17 | 0.94 |
| Max Drawdown (5Y) | -34.29% | -29.05% |
| Avg. Volume (3M) | 409.99K | 369.72K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LECO | TDG |
|---|---|---|
| Sharpe Ratio (1Y) | 0.74 | -0.27 |
| Sortino Ratio (1Y) | 1.11 | -0.38 |
Profitability
ROE (TTM)
Capital efficiency shows on one side only: Lincoln Electric (LECO) earns 38.75% on shareholders’ equity, ranked against its industry; TransDigm (TDG) has no ROE this period.
LECO
Capital Goods industry group
38.75%
- Max
- 40.55%
- LECO
- 38.75%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
TDG
Capital Goods industry group
--
- Max
- 40.55%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
- TDG
- --
Net Margin (TTM)
For every dollar of sales, both Lincoln Electric (LECO) at 12.40% and TransDigm (TDG) at 21.28% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
LECO
Capital Goods industry group
12.40%
- Max
- 27.47%
- LECO
- 12.40%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
TDG
Capital Goods industry group
21.28%
- Max
- 27.47%
- TDG
- 21.28%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
TransDigm (TDG) at 46.01% turns sales into operating profit above its industry’s benchmark range, while Lincoln Electric (LECO) at 18.29% operates around its industry’s norm.
LECO
Capital Goods industry group
18.29%
- Max
- 36.60%
- Q3
- 18.33%
- LECO
- 18.29%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
TDG
Capital Goods industry group
46.01%
- TDG
- 46.01%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | LECO | TDG |
|---|---|---|
| ROE (TTM) | 38.75% | -- |
| ROA (TTM) | 13.32% | 11.82% |
| Net Margin (TTM) | 12.40% | 21.28% |
| Operating Margin (TTM) | 18.29% | 46.01% |
| Gross Margin (TTM) | 35.54% | 59.82% |
Growth
Revenue Growth
Both Lincoln Electric (LECO) at 5.60% and TransDigm (TDG) at 11.22% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Lincoln Electric (LECO) at 14.36% and TransDigm (TDG) at 25.21% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | LECO | TDG |
|---|---|---|
| Revenue Growth (YoY) | 5.60% | 11.22% |
| Revenue Growth (3Y CAGR) | 4.02% | 17.61% |
| EPS Growth (YoY) | 14.36% | 25.21% |
| EPS Growth (3Y CAGR) | 5.05% | 33.78% |
Financial Strength
Current Ratio (MRQ)
Lincoln Electric (LECO) at 1.91 keeps current ratio within its industry’s typical mid-range, while TransDigm (TDG) at 3.02 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
LECO
Capital Goods industry group
1.91
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- LECO
- 1.91
- Q1
- 1.43
- Min
- 0.36
TDG
Capital Goods industry group
3.02
- Max
- 5.22
- TDG
- 3.02
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Only one side’s leverage can be read here: Lincoln Electric (LECO) carries debt-to-equity ratio of 0.78 against its industry range, while TransDigm (TDG) reports no figure this period.
LECO
Capital Goods industry group
0.78
- Max
- 2.33
- Q3
- 1.12
- LECO
- 0.78
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
TDG
Capital Goods industry group
--
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
- TDG
- --
Financial Strength Metrics
| Metric | LECO | TDG |
|---|---|---|
| Current Ratio (MRQ) | 1.91 | 3.02 |
| Debt / Equity (MRQ) | 0.78 | -- |
| Net Debt / EBITDA | 1.00 | 6.03 |
Dividends
Dividend Yield (TTM)
TransDigm (TDG) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Lincoln Electric (LECO) reports a yield of 1.16%, ranking against industry peers normally.
LECO
Capital Goods industry group
1.16%
- Max
- 2.66%
- LECO
- 1.16%
- Q3
- 1.14%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
TDG
Capital Goods industry group
0.00%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- TDG
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
TransDigm (TDG) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Lincoln Electric (LECO) reports a payout of 30.30%, ranking against industry peers normally.
LECO
Capital Goods industry group
30.30%
- Max
- 67.39%
- LECO
- 30.30%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
TDG
Capital Goods industry group
0.00%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- TDG
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | LECO | TDG |
|---|---|---|
| Dividend Yield (TTM) | 1.16% | 0.00% |
| Dividend Payout Ratio (TTM) | 30.30% | 0.00% |
Valuation
P/E Ratio (TTM)
Lincoln Electric (LECO) at 26.40 is near its industry’s usual P/E ratio, while TransDigm (TDG) at 36.31 sits in the richer quartile — TDG needs stronger growth or earnings quality to justify the premium.
LECO
Capital Goods industry group
26.40
- Max
- 59.38
- Q3
- 35.92
- LECO
- 26.40
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
TDG
Capital Goods industry group
36.31
- Max
- 59.38
- TDG
- 36.31
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
Lincoln Electric (LECO) at 3.21 is priced about in line with its industry on P/S ratio, while TransDigm (TDG) at 6.61 sits in the pricier quartile — TDG costs more per dollar of sales.
LECO
Capital Goods industry group
3.21
- Max
- 7.54
- Q3
- 3.76
- LECO
- 3.21
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
TDG
Capital Goods industry group
6.61
- Max
- 7.54
- TDG
- 6.61
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
TransDigm (TDG) reports a negative P/B ratio of -6.74, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Lincoln Electric (LECO) reports 9.59, ranking against industry peers normally.
LECO
Capital Goods industry group
9.59
- Max
- 9.66
- LECO
- 9.59
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
TDG
Capital Goods industry group
-6.74
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
- TDG
- -6.74
Valuation Metrics
| Metric | LECO | TDG |
|---|---|---|
| P/E Ratio (TTM) | 26.40 | 36.31 |
| P/S Ratio (TTM) | 3.21 | 6.61 |
| P/B Ratio (MRQ) | 9.59 | -6.74 |
| Free Cash Flow Yield (TTM) | 2.68% | 2.20% |