TDG vs. UPS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TDG and UPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TDG | UPS |
|---|---|---|
| Company Name | TransDigm Group Incorporated | United Parcel Service, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Air Freight & Logistics |
| Market Capitalization | 78.33 billion USD | 74.37 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 15, 2006 | November 10, 1999 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TDG and UPS 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 | UPS |
|---|---|---|
| 5-Day Price Return | -0.56% | -0.07% |
| 13-Week Price Return | -1.08% | -9.52% |
| 26-Week Price Return | 3.54% | -23.70% |
| 52-Week Price Return | 6.56% | -30.83% |
| Month-to-Date Return | -13.58% | 1.83% |
| Year-to-Date Return | 9.68% | -30.42% |
| 10-Day Avg. Volume | 0.34M | 8.84M |
| 3-Month Avg. Volume | 0.30M | 6.45M |
| 3-Month Volatility | 29.09% | 31.30% |
| Beta | 1.03 | 1.10 |
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.
UPS
35.27%
Air Freight & Logistics Industry
- Max
- 35.27%
- Q3
- 18.47%
- Median
- 11.35%
- Q1
- 7.21%
- Min
- 2.53%
In the upper quartile for the Air Freight & Logistics industry, UPS’s Return on Equity of 35.27% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
UPS
6.34%
Air Freight & Logistics Industry
- Max
- 10.27%
- Q3
- 6.18%
- Median
- 3.96%
- Q1
- 2.32%
- Min
- 0.61%
A Net Profit Margin of 6.34% places UPS in the upper quartile for the Air Freight & Logistics industry, signifying strong profitability and more effective cost management than most of its peers.
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.
UPS
9.30%
Air Freight & Logistics Industry
- Max
- 17.40%
- Q3
- 8.87%
- Median
- 5.89%
- Q1
- 3.03%
- Min
- 0.62%
An Operating Profit Margin of 9.30% places UPS in the upper quartile for the Air Freight & Logistics industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | TDG | UPS |
|---|---|---|
| Return on Equity (TTM) | 37.11% | 35.27% |
| Return on Assets (TTM) | 8.43% | 8.25% |
| Net Profit Margin (TTM) | 22.52% | 6.34% |
| Operating Profit Margin (TTM) | 45.94% | 9.30% |
| Gross Profit Margin (TTM) | 60.12% | 81.60% |
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.
UPS
1.32
Air Freight & Logistics Industry
- Max
- 1.83
- Q3
- 1.47
- Median
- 1.29
- Q1
- 1.05
- Min
- 0.62
UPS’s Current Ratio of 1.32 aligns with the median group of the Air Freight & Logistics 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
- 1.70
- 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.
UPS
1.57
Air Freight & Logistics Industry
- Max
- 1.57
- Q3
- 1.06
- Median
- 0.72
- Q1
- 0.30
- Min
- 0.00
UPS’s leverage is in the upper quartile of the Air Freight & Logistics industry, with a Debt-to-Equity Ratio of 1.57. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
UPS
9.59
Air Freight & Logistics Industry
- Max
- 49.07
- Q3
- 23.59
- Median
- 8.56
- Q1
- 5.97
- Min
- -0.60
UPS’s Interest Coverage Ratio of 9.59 is positioned comfortably within the norm for the Air Freight & Logistics industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | TDG | UPS |
|---|---|---|
| Current Ratio (MRQ) | 3.13 | 1.32 |
| Quick Ratio (MRQ) | 2.07 | 1.32 |
| Debt-to-Equity Ratio (MRQ) | 5.41 | 1.57 |
| Interest Coverage Ratio (TTM) | 2.72 | 9.59 |
Growth
Revenue Growth
EPS Growth
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.
UPS
7.29%
Air Freight & Logistics Industry
- Max
- 6.43%
- Q3
- 3.10%
- Median
- 2.40%
- Q1
- 0.46%
- Min
- 0.00%
UPS’s Dividend Yield of 7.29% is exceptionally high, placing it well above the typical range for the Air Freight & Logistics 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.
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.
UPS
94.15%
Air Freight & Logistics Industry
- Max
- 160.95%
- Q3
- 92.80%
- Median
- 54.10%
- Q1
- 0.19%
- Min
- 0.00%
UPS’s Dividend Payout Ratio of 94.15% is in the upper quartile for the Air Freight & Logistics 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.
Dividend at a Glance
| Symbol | TDG | UPS |
|---|---|---|
| Dividend Yield (TTM) | 5.58% | 7.29% |
| Dividend Payout Ratio (TTM) | 891.68% | 94.15% |
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.
UPS
12.92
Air Freight & Logistics Industry
- Max
- 34.55
- Q3
- 23.34
- Median
- 16.33
- Q1
- 13.38
- Min
- 6.36
In the lower quartile for the Air Freight & Logistics industry, UPS’s P/E Ratio of 12.92 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
UPS
0.82
Air Freight & Logistics Industry
- Max
- 2.13
- Q3
- 1.16
- Median
- 0.59
- Q1
- 0.36
- Min
- 0.18
UPS’s P/S Ratio of 0.82 aligns with the market consensus for the Air Freight & Logistics industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
UPS
5.43
Air Freight & Logistics Industry
- Max
- 3.13
- Q3
- 2.81
- Median
- 1.82
- Q1
- 1.20
- Min
- 0.74
At 5.43, UPS’s P/B Ratio is at an extreme premium to the Air Freight & Logistics 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.
Valuation at a Glance
| Symbol | TDG | UPS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 40.76 | 12.92 |
| Price-to-Sales Ratio (TTM) | 9.18 | 0.82 |
| Price-to-Book Ratio (MRQ) | 10.13 | 5.43 |
| Price-to-Free Cash Flow Ratio (TTM) | 41.32 | 13.77 |