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

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

Company Profile

SymbolTDGTT
Company NameTransDigm Group IncorporatedTrane Technologies plc
CountryUnited StatesIreland
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseBuilding Products
Market Capitalization73.30 billion USD94.66 billion USD
ExchangeNYSENYSE
Listing DateMarch 15, 2006March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TDG and TT 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.

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

Historical Performance at a Glance

SymbolTDGTT
5-Day Price Return1.39%4.42%
13-Week Price Return-13.32%-3.53%
26-Week Price Return-5.45%19.85%
52-Week Price Return-6.05%9.90%
Month-to-Date Return-5.78%1.53%
Year-to-Date Return4.00%14.24%
10-Day Avg. Volume0.28M1.39M
3-Month Avg. Volume0.32M1.27M
3-Month Volatility32.04%25.48%
Beta1.021.17

Profitability

Return on Equity (TTM)

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.

TT

37.61%

Building Products Industry

Max
46.90%
Q3
27.60%
Median
15.43%
Q1
8.94%
Min
0.77%

In the upper quartile for the Building Products industry, TT’s Return on Equity of 37.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TDG vs. TT: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Net Profit Margin (TTM)

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.

TT

13.76%

Building Products Industry

Max
19.42%
Q3
13.74%
Median
8.72%
Q1
4.81%
Min
0.46%

A Net Profit Margin of 13.76% places TT in the upper quartile for the Building Products industry, signifying strong profitability and more effective cost management than most of its peers.

TDG vs. TT: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Operating Profit Margin (TTM)

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.

TT

18.39%

Building Products Industry

Max
26.72%
Q3
17.70%
Median
12.14%
Q1
9.54%
Min
1.65%

An Operating Profit Margin of 18.39% places TT in the upper quartile for the Building Products industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

TDG vs. TT: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Profitability at a Glance

SymbolTDGTT
Return on Equity (TTM)37.11%37.61%
Return on Assets (TTM)8.43%13.90%
Net Profit Margin (TTM)22.52%13.76%
Operating Profit Margin (TTM)45.94%18.39%
Gross Profit Margin (TTM)60.12%36.26%

Financial Strength

Current Ratio (MRQ)

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.

TT

1.10

Building Products Industry

Max
3.10
Q3
2.06
Median
1.60
Q1
1.30
Min
0.88

TT’s Current Ratio of 1.10 falls into the lower quartile for the Building Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

TDG vs. TT: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Building Products industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

TT

0.59

Building Products Industry

Max
1.64
Q3
1.02
Median
0.62
Q1
0.20
Min
0.00

TT’s Debt-to-Equity Ratio of 0.59 is typical for the Building Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

TT

15.31

Building Products Industry

Max
72.12
Q3
34.39
Median
23.97
Q1
7.29
Min
2.97

TT’s Interest Coverage Ratio of 15.31 is positioned comfortably within the norm for the Building Products industry, indicating a standard and healthy capacity to cover its interest payments.

TDG vs. TT: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Financial Strength at a Glance

SymbolTDGTT
Current Ratio (MRQ)3.131.10
Quick Ratio (MRQ)2.070.76
Debt-to-Equity Ratio (MRQ)5.410.59
Interest Coverage Ratio (TTM)2.7215.31

Growth

Revenue Growth

TDG vs. TT: 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

TDG vs. TT: 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)

TDG

5.88%

Aerospace & Defense Industry

Max
2.72%
Q3
1.45%
Median
0.48%
Q1
0.08%
Min
0.00%

TDG’s Dividend Yield of 5.88% 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.

TT

0.84%

Building Products Industry

Max
2.51%
Q3
1.92%
Median
1.30%
Q1
0.78%
Min
0.00%

TT’s Dividend Yield of 0.84% is consistent with its peers in the Building Products industry, providing a dividend return that is standard for its sector.

TDG vs. TT: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Dividend Payout Ratio (TTM)

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.

TT

27.94%

Building Products Industry

Max
157.36%
Q3
76.90%
Median
30.70%
Q1
17.97%
Min
0.00%

TT’s Dividend Payout Ratio of 27.94% is within the typical range for the Building Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TDG vs. TT: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Dividend at a Glance

SymbolTDGTT
Dividend Yield (TTM)5.88%0.84%
Dividend Payout Ratio (TTM)891.68%27.94%

Valuation

Price-to-Earnings Ratio (TTM)

TDG

38.70

Aerospace & Defense Industry

Max
67.20
Q3
55.74
Median
33.28
Q1
27.49
Min
15.02

TDG’s P/E Ratio of 38.70 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.

TT

33.14

Building Products Industry

Max
45.60
Q3
30.36
Median
21.97
Q1
17.37
Min
12.44

A P/E Ratio of 33.14 places TT in the upper quartile for the Building Products industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

TDG

8.72

Aerospace & Defense Industry

Max
9.06
Q3
4.87
Median
2.47
Q1
1.61
Min
0.33

TDG’s P/S Ratio of 8.72 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.

TT

4.56

Building Products Industry

Max
5.90
Q3
3.09
Median
1.72
Q1
1.07
Min
0.37

TT’s P/S Ratio of 4.56 is in the upper echelon for the Building Products 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 vs. TT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

TT

12.45

Building Products Industry

Max
10.99
Q3
5.69
Median
2.98
Q1
1.80
Min
0.66

At 12.45, TT’s P/B Ratio is at an extreme premium to the Building Products 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 vs. TT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Building Products industry benchmarks.

Valuation at a Glance

SymbolTDGTT
Price-to-Earnings Ratio (TTM)38.7033.14
Price-to-Sales Ratio (TTM)8.724.56
Price-to-Book Ratio (MRQ)10.1312.45
Price-to-Free Cash Flow Ratio (TTM)39.2333.67