TDG vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TDG and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TDG | TXT |
|---|---|---|
| Company Name | TransDigm Group Incorporated | Textron Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 76.07 billion USD | 14.43 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 15, 2006 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TDG and TXT 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 | TDG | TXT |
|---|---|---|
| 5-Day Price Return | 4.01% | -1.63% |
| 13-Week Price Return | -3.41% | 2.32% |
| 26-Week Price Return | -5.31% | 5.49% |
| 52-Week Price Return | -1.64% | -7.82% |
| Month-to-Date Return | 2.45% | -0.11% |
| Year-to-Date Return | 5.79% | 5.53% |
| 10-Day Avg. Volume | 0.34M | 1.19M |
| 3-Month Avg. Volume | 0.33M | 1.49M |
| 3-Month Volatility | 25.35% | 21.51% |
| Beta | 0.92 | 1.01 |
Profitability
Return on Equity (TTM)
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.
TXT
11.25%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
TXT’s Return on Equity of 11.25% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
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.
TXT
5.81%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
TXT’s Net Profit Margin of 5.81% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
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.
TXT
5.90%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
TXT’s Operating Profit Margin of 5.90% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | TDG | TXT |
|---|---|---|
| Return on Equity (TTM) | 37.11% | 11.25% |
| Return on Assets (TTM) | 9.32% | 4.85% |
| Net Profit Margin (TTM) | 23.49% | 5.81% |
| Operating Profit Margin (TTM) | 47.04% | 5.90% |
| Gross Profit Margin (TTM) | 60.61% | 20.62% |
Financial Strength
Current Ratio (MRQ)
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.
TXT
1.71
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
TXT’s Current Ratio of 1.71 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
TXT
0.50
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
TXT’s Debt-to-Equity Ratio of 0.50 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.
Interest Coverage Ratio (TTM)
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.
TXT
10.72
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
TXT’s Interest Coverage Ratio of 10.72 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 | TDG | TXT |
|---|---|---|
| Current Ratio (MRQ) | 3.21 | 1.71 |
| Quick Ratio (MRQ) | 2.16 | 0.73 |
| Debt-to-Equity Ratio (MRQ) | 5.41 | 0.50 |
| Interest Coverage Ratio (TTM) | 2.67 | 10.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
TXT
0.11%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
TXT’s Dividend Yield of 0.11% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
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.
TXT
1.81%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
TXT’s Dividend Payout Ratio of 1.81% is in the lower quartile for the Aerospace & Defense industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | TDG | TXT |
|---|---|---|
| Dividend Yield (TTM) | 12.76% | 0.11% |
| Dividend Payout Ratio (TTM) | 872.98% | 1.81% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
TXT
17.20
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.20 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
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.
TXT
1.00
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.00 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
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.
TXT
2.00
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
TXT’s P/B Ratio of 2.00 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | TDG | TXT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 36.37 | 17.20 |
| Price-to-Sales Ratio (TTM) | 8.54 | 1.00 |
| Price-to-Book Ratio (MRQ) | 10.13 | 2.00 |
| Price-to-Free Cash Flow Ratio (TTM) | 41.54 | 16.26 |