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

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

Company Profile

SymbolTDGUAL
Company NameTransDigm Group IncorporatedUnited Airlines Holdings, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefensePassenger Airlines
Market Capitalization78.33 billion USD33.13 billion USD
ExchangeNYSENasdaqGS
Listing DateMarch 15, 2006February 6, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TDG and UAL 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. UAL: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolTDGUAL
5-Day Price Return-0.56%0.15%
13-Week Price Return-1.08%34.66%
26-Week Price Return3.54%-3.92%
52-Week Price Return6.56%146.96%
Month-to-Date Return-13.58%15.89%
Year-to-Date Return9.68%5.40%
10-Day Avg. Volume0.34M5.25M
3-Month Avg. Volume0.30M7.25M
3-Month Volatility29.09%51.97%
Beta1.031.51

Profitability

Return on Equity (TTM)

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.

UAL

26.43%

Passenger Airlines Industry

Max
49.96%
Q3
28.15%
Median
15.41%
Q1
8.29%
Min
-11.01%

UAL’s Return on Equity of 26.43% is on par with the norm for the Passenger Airlines industry, indicating its profitability relative to shareholder equity is typical for the sector.

TDG vs. UAL: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

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.

UAL

5.71%

Passenger Airlines Industry

Max
17.65%
Q3
8.90%
Median
5.80%
Q1
2.02%
Min
-3.12%

UAL’s Net Profit Margin of 5.71% is aligned with the median group of its peers in the Passenger Airlines industry. This indicates its ability to convert revenue into profit is typical for the sector.

TDG vs. UAL: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

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.

UAL

8.62%

Passenger Airlines Industry

Max
22.47%
Q3
12.33%
Median
8.62%
Q1
4.43%
Min
-2.88%

UAL’s Operating Profit Margin of 8.62% is around the midpoint for the Passenger Airlines industry, indicating that its efficiency in managing core business operations is typical for the sector.

TDG vs. UAL: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Profitability at a Glance

SymbolTDGUAL
Return on Equity (TTM)37.11%26.43%
Return on Assets (TTM)8.43%4.41%
Net Profit Margin (TTM)22.52%5.71%
Operating Profit Margin (TTM)45.94%8.62%
Gross Profit Margin (TTM)60.12%64.15%

Financial Strength

Current Ratio (MRQ)

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.

UAL

0.70

Passenger Airlines Industry

Max
1.46
Q3
0.94
Median
0.76
Q1
0.54
Min
0.17

UAL’s Current Ratio of 0.70 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.

TDG vs. UAL: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

UAL

2.02

Passenger Airlines Industry

Max
9.80
Q3
4.82
Median
1.30
Q1
0.89
Min
0.00

UAL’s Debt-to-Equity Ratio of 2.02 is typical for the Passenger Airlines industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

UAL

5.76

Passenger Airlines Industry

Max
22.60
Q3
16.29
Median
6.75
Q1
1.94
Min
-8.55

UAL’s Interest Coverage Ratio of 5.76 is positioned comfortably within the norm for the Passenger Airlines industry, indicating a standard and healthy capacity to cover its interest payments.

TDG vs. UAL: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

SymbolTDGUAL
Current Ratio (MRQ)3.130.70
Quick Ratio (MRQ)2.070.62
Debt-to-Equity Ratio (MRQ)5.412.02
Interest Coverage Ratio (TTM)2.725.76

Growth

Revenue Growth

TDG vs. UAL: 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. UAL: 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

5.58%

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.

UAL

0.00%

Passenger Airlines Industry

Max
6.71%
Q3
3.95%
Median
1.10%
Q1
0.00%
Min
0.00%

UAL currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

TDG vs. UAL: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

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.

UAL

0.00%

Passenger Airlines Industry

Max
71.59%
Q3
38.54%
Median
8.16%
Q1
0.00%
Min
0.00%

UAL has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

TDG vs. UAL: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend at a Glance

SymbolTDGUAL
Dividend Yield (TTM)5.58%0.00%
Dividend Payout Ratio (TTM)891.68%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

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.

UAL

9.78

Passenger Airlines Industry

Max
13.29
Q3
11.94
Median
8.78
Q1
7.42
Min
3.07

UAL’s P/E Ratio of 9.78 is within the middle range for the Passenger Airlines 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 vs. UAL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

UAL

0.56

Passenger Airlines Industry

Max
1.09
Q3
0.74
Median
0.61
Q1
0.44
Min
0.09

UAL’s P/S Ratio of 0.56 aligns with the market consensus for the Passenger Airlines industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

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.

UAL

1.94

Passenger Airlines Industry

Max
3.44
Q3
2.89
Median
1.84
Q1
1.22
Min
0.56

UAL’s P/B Ratio of 1.94 is within the conventional range for the Passenger Airlines industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

SymbolTDGUAL
Price-to-Earnings Ratio (TTM)40.769.78
Price-to-Sales Ratio (TTM)9.180.56
Price-to-Book Ratio (MRQ)10.131.94
Price-to-Free Cash Flow Ratio (TTM)41.328.00