Seek Returns logo

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

Updated on

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

Company Profile

SymbolPAYXTDG
Company NamePaychex, Inc.TransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryProfessional ServicesAerospace & Defense
Market Capitalization39.95 billion USD76.07 billion USD
ExchangeNasdaqGSNYSE
Listing DateAugust 26, 1983March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of PAYX 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.

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

Historical Performance at a Glance

SymbolPAYXTDG
5-Day Price Return0.56%4.01%
13-Week Price Return-18.91%-3.41%
26-Week Price Return-25.89%-5.31%
52-Week Price Return-23.50%-1.64%
Month-to-Date Return-4.21%2.45%
Year-to-Date Return-20.05%5.79%
10-Day Avg. Volume3.14M0.34M
3-Month Avg. Volume2.63M0.33M
3-Month Volatility19.36%25.35%
Beta0.920.92

Profitability

Return on Equity (TTM)

PAYX

39.99%

Professional Services Industry

Max
50.82%
Q3
32.98%
Median
21.73%
Q1
12.35%
Min
-10.69%

In the upper quartile for the Professional Services industry, PAYX’s Return on Equity of 39.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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.

PAYX vs. TDG: A comparison of their Return on Equity (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

PAYX

27.86%

Professional Services Industry

Max
27.86%
Q3
14.27%
Median
7.71%
Q1
4.47%
Min
-9.49%

A Net Profit Margin of 27.86% places PAYX in the upper quartile for the Professional Services 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.

PAYX vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

PAYX

37.44%

Professional Services Industry

Max
35.71%
Q3
19.52%
Median
12.30%
Q1
7.86%
Min
-1.29%

PAYX’s Operating Profit Margin of 37.44% is exceptionally high, placing it well above the typical range for the Professional Services 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.

PAYX vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolPAYXTDG
Return on Equity (TTM)39.99%37.11%
Return on Assets (TTM)11.74%9.32%
Net Profit Margin (TTM)27.86%23.49%
Operating Profit Margin (TTM)37.44%47.04%
Gross Profit Margin (TTM)90.88%60.61%

Financial Strength

Current Ratio (MRQ)

PAYX

1.27

Professional Services Industry

Max
2.45
Q3
1.69
Median
1.33
Q1
1.10
Min
0.47

PAYX’s Current Ratio of 1.27 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector 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.

PAYX vs. TDG: A comparison of their Current Ratio (MRQ) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

PAYX

1.25

Professional Services Industry

Max
2.55
Q3
1.54
Median
0.94
Q1
0.45
Min
0.00

PAYX’s Debt-to-Equity Ratio of 1.25 is typical for the Professional Services 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.

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

Interest Coverage Ratio (TTM)

PAYX

55.47

Professional Services Industry

Max
39.45
Q3
20.05
Median
11.35
Q1
5.46
Min
-1.21

With an Interest Coverage Ratio of 55.47, PAYX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.

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.

PAYX vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolPAYXTDG
Current Ratio (MRQ)1.273.21
Quick Ratio (MRQ)1.212.16
Debt-to-Equity Ratio (MRQ)1.255.41
Interest Coverage Ratio (TTM)55.472.67

Growth

Revenue Growth

PAYX 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

PAYX 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)

PAYX

3.68%

Professional Services Industry

Max
4.35%
Q3
2.86%
Median
1.57%
Q1
0.72%
Min
0.00%

With a Dividend Yield of 3.68%, PAYX offers a more attractive income stream than most of its peers in the Professional Services industry, signaling a strong commitment to shareholder returns.

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.

PAYX vs. TDG: A comparison of their Dividend Yield (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

PAYX

91.97%

Professional Services Industry

Max
99.60%
Q3
69.06%
Median
43.41%
Q1
19.44%
Min
0.00%

PAYX’s Dividend Payout Ratio of 91.97% is in the upper quartile for the Professional Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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.

PAYX vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Professional Services and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolPAYXTDG
Dividend Yield (TTM)3.68%12.76%
Dividend Payout Ratio (TTM)91.97%872.98%

Valuation

Price-to-Earnings Ratio (TTM)

PAYX

25.00

Professional Services Industry

Max
52.91
Q3
32.20
Median
25.00
Q1
17.95
Min
6.60

PAYX’s P/E Ratio of 25.00 is within the middle range for the Professional Services 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

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.

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

Price-to-Sales Ratio (TTM)

PAYX

6.96

Professional Services Industry

Max
8.52
Q3
4.25
Median
2.07
Q1
0.84
Min
0.18

PAYX’s P/S Ratio of 6.96 is in the upper echelon for the Professional Services 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

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.

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

Price-to-Book Ratio (MRQ)

PAYX

12.65

Professional Services Industry

Max
18.65
Q3
9.28
Median
6.16
Q1
2.96
Min
0.53

PAYX’s P/B Ratio of 12.65 is in the upper tier for the Professional Services 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.

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.

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

Valuation at a Glance

SymbolPAYXTDG
Price-to-Earnings Ratio (TTM)25.0036.37
Price-to-Sales Ratio (TTM)6.968.54
Price-to-Book Ratio (MRQ)12.6510.13
Price-to-Free Cash Flow Ratio (TTM)22.0641.54