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

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

Company Profile

SymbolTDGVRT
Company NameTransDigm Group IncorporatedVertiv Holdings Co
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseElectrical Equipment
Market Capitalization79.01 billion USD48.70 billion USD
ExchangeNYSENYSE
Listing DateMarch 15, 2006August 2, 2018
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolTDGVRT
5-Day Price Return-0.75%-3.76%
13-Week Price Return-2.63%19.87%
26-Week Price Return4.96%16.71%
52-Week Price Return7.18%61.69%
Month-to-Date Return-12.83%-12.40%
Year-to-Date Return10.64%12.26%
10-Day Avg. Volume0.40M6.25M
3-Month Avg. Volume0.31M7.70M
3-Month Volatility29.15%40.24%
Beta1.041.87

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.

VRT

32.36%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

In the upper quartile for the Electrical Equipment industry, VRT’s Return on Equity of 32.36% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TDG vs. VRT: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

8.93%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

VRT’s Net Profit Margin of 8.93% is aligned with the median group of its peers in the Electrical Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

TDG vs. VRT: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

13.20%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

VRT’s Operating Profit Margin of 13.20% is around the midpoint for the Electrical Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

TDG vs. VRT: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Electrical Equipment industry benchmarks.

Profitability at a Glance

SymbolTDGVRT
Return on Equity (TTM)37.11%32.36%
Return on Assets (TTM)8.43%8.58%
Net Profit Margin (TTM)22.52%8.93%
Operating Profit Margin (TTM)45.94%13.20%
Gross Profit Margin (TTM)60.12%35.29%

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.

VRT

1.74

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

VRT’s Current Ratio of 1.74 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

TDG vs. VRT: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

0.93

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

VRT’s Debt-to-Equity Ratio of 0.93 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TDG vs. VRT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

2.36

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

VRT’s Interest Coverage Ratio of 2.36 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

TDG vs. VRT: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Electrical Equipment industry benchmarks.

Financial Strength at a Glance

SymbolTDGVRT
Current Ratio (MRQ)3.131.74
Quick Ratio (MRQ)2.071.35
Debt-to-Equity Ratio (MRQ)5.410.93
Interest Coverage Ratio (TTM)2.722.36

Growth

Revenue Growth

TDG vs. VRT: 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. VRT: 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.

VRT

0.11%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

VRT’s Dividend Yield of 0.11% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

TDG vs. VRT: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

6.39%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

VRT’s Dividend Payout Ratio of 6.39% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TDG vs. VRT: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Electrical Equipment industry benchmarks.

Dividend at a Glance

SymbolTDGVRT
Dividend Yield (TTM)5.58%0.11%
Dividend Payout Ratio (TTM)891.68%6.39%

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.

VRT

59.82

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

A P/E Ratio of 59.82 places VRT in the upper quartile for the Electrical Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

TDG vs. VRT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

5.34

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

VRT’s P/S Ratio of 5.34 is in the upper echelon for the Electrical Equipment 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. VRT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Electrical Equipment 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.

VRT

15.66

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

At 15.66, VRT’s P/B Ratio is at an extreme premium to the Electrical Equipment 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. VRT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Electrical Equipment industry benchmarks.

Valuation at a Glance

SymbolTDGVRT
Price-to-Earnings Ratio (TTM)40.7659.82
Price-to-Sales Ratio (TTM)9.185.34
Price-to-Book Ratio (MRQ)10.1315.66
Price-to-Free Cash Flow Ratio (TTM)41.3239.11