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

Updated on August 26, 2025

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

Company Profile

Symbol	TDG	WAB
Company Name	TransDigm Group Incorporated	Westinghouse Air Brake Technologies Corporation
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Machinery
Market Capitalization	78.33 billion USD	33.05 billion USD
Exchange	NYSE	NYSE
Listing Date	March 15, 2006	June 16, 1995
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	TDG	WAB
5-Day Price Return	-0.56%	0.33%
13-Week Price Return	-1.08%	-3.44%
26-Week Price Return	3.54%	-0.01%
52-Week Price Return	6.56%	18.43%
Month-to-Date Return	-13.58%	0.66%
Year-to-Date Return	9.68%	1.96%
10-Day Avg. Volume	0.34M	0.81M
3-Month Avg. Volume	0.30M	1.02M
3-Month Volatility	29.09%	20.53%
Beta	1.03	1.11

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.

WAB

11.11%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

WAB’s Return on Equity of 11.11% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

WAB

10.92%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

WAB’s Net Profit Margin of 10.92% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

WAB

16.22%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

An Operating Profit Margin of 16.22% places WAB in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

Symbol	TDG	WAB
Return on Equity (TTM)	37.11%	11.11%
Return on Assets (TTM)	8.43%	6.00%
Net Profit Margin (TTM)	22.52%	10.92%
Operating Profit Margin (TTM)	45.94%	16.22%
Gross Profit Margin (TTM)	60.12%	33.57%

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.

WAB

1.76

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

WAB’s Current Ratio of 1.76 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

TDG vs. WAB: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Machinery 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.

WAB

0.44

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
Min: 0.00

WAB’s Debt-to-Equity Ratio of 0.44 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

WAB

7.65

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
Q1: 7.97
Min: -1.43

In the lower quartile for the Machinery industry, WAB’s Interest Coverage Ratio of 7.65 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

Symbol	TDG	WAB
Current Ratio (MRQ)	3.13	1.76
Quick Ratio (MRQ)	2.07	1.05
Debt-to-Equity Ratio (MRQ)	5.41	0.44
Interest Coverage Ratio (TTM)	2.72	7.65

Growth

Revenue Growth

TDG vs. WAB: 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. WAB: 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.

WAB

0.47%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

WAB’s Dividend Yield of 0.47% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TDG vs. WAB: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Machinery 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.

WAB

13.53%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
Min: 0.00%

WAB’s Dividend Payout Ratio of 13.53% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

Symbol	TDG	WAB
Dividend Yield (TTM)	5.58%	0.47%
Dividend Payout Ratio (TTM)	891.68%	13.53%

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.

WAB

28.50

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

WAB’s P/E Ratio of 28.50 is within the middle range for the Machinery 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. WAB: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Machinery 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.

WAB

3.11

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

WAB’s P/S Ratio of 3.11 is in the upper echelon for the Machinery 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. WAB: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Machinery 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.

WAB

3.32

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

WAB’s P/B Ratio of 3.32 is within the conventional range for the Machinery 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. WAB: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Valuation at a Glance

Symbol	TDG	WAB
Price-to-Earnings Ratio (TTM)	40.76	28.50
Price-to-Sales Ratio (TTM)	9.18	3.11
Price-to-Book Ratio (MRQ)	10.13	3.32
Price-to-Free Cash Flow Ratio (TTM)	41.32	22.63