TDG vs. WTS: TransDigm vs. Watts Water Stock Comparison

November 11, 2026

How do TransDigm (TDG) and Watts Water (WTS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

TransDigm (TDG) and Watts Water (WTS) both fall under the Capital Goods industry group, but TDG is classified in Aerospace & Defense while WTS is classified in Machinery.

Company profile comparison for TransDigm (TDG) and Watts Water (WTS)
Profile Item	TDG	WTS
Name	TransDigm Group Inc.	Watts Water Technologies, Inc. Class A Common Stock
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Aerospace & Defense	Machinery
GICS Sub-Industry	Aerospace & Defense	Industrial Machinery & Supplies & Components
Market Capitalization	66.17 billion USD	11.55 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 15, 2006	August 21, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

TDG

WTS

GSPC

TransDigm (TDG) vs. Watts Water (WTS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for TransDigm (TDG) and Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for TransDigm (TDG) and Watts Water (WTS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Total Return (1Y)	-3.42%	33.85%
Total Return (3Y, Annualized)	14.26%	25.59%
Total Return (5Y, Annualized)	16.86%	12.56%

Risk Profile

Drawdown History

TDG

WTS

GSPC

TransDigm (TDG) vs. Watts Water (WTS), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for TransDigm (TDG) and Watts Water (WTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Volatility (1Y, Annualized)	28.03%	27.38%
Beta (5Y)	0.94	1.11
Max Drawdown (5Y)	-29.05%	-44.08%
Avg. Volume (3M)	369.72K	225.08K

Risk-Adjusted Performance

Risk-Return Positioning

TDG and WTS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Sharpe Ratio (1Y)	-0.27	1.08
Sortino Ratio (1Y)	-0.38	1.78

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Watts Water (WTS) earns 20.91% on shareholders’ equity, ranked against its industry; TransDigm (TDG) has no ROE this period.

TDG

Capital Goods industry group

Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%
TDG: --

WTS

Capital Goods industry group

20.91%

Max: 40.55%
WTS: 20.91%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

TransDigm (TDG) vs. Watts Water (WTS): TDG does not report ROE, so it has no value marker; WTS is benchmarked against the Capital Goods industry group.

Net Margin (TTM)

For every dollar of sales, both TransDigm (TDG) at 21.28% and Watts Water (WTS) at 16.00% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

TDG

Capital Goods industry group

21.28%

Max: 27.47%
TDG: 21.28%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

WTS

Capital Goods industry group

16.00%

Max: 27.47%
WTS: 16.00%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

TransDigm (TDG) at 46.01% shows unusually strong operating efficiency — above its industry’s operating margin range — and Watts Water (WTS) at 20.85% also operates in the top quartile.

TDG

Capital Goods industry group

46.01%

TDG: 46.01%
Max: 36.60%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

WTS

Capital Goods industry group

20.85%

Max: 36.60%
WTS: 20.85%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
ROE (TTM)	--	20.91%
ROA (TTM)	11.82%	12.05%
Net Margin (TTM)	21.28%	16.00%
Operating Margin (TTM)	46.01%	20.85%
Gross Margin (TTM)	59.82%	49.09%

Growth

Revenue Growth

Both TransDigm (TDG) at 11.22% and Watts Water (WTS) at 8.27% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both TransDigm (TDG) at 25.21% and Watts Water (WTS) at 17.03% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Revenue Growth (YoY)	11.22%	8.27%
Revenue Growth (3Y CAGR)	17.61%	7.20%
EPS Growth (YoY)	25.21%	17.03%
EPS Growth (3Y CAGR)	33.78%	10.78%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 keeps current ratio within its industry’s typical mid-range, while TransDigm (TDG) at 3.02 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

TDG

Capital Goods industry group

3.02

Max: 5.22
TDG: 3.02
Q3: 2.95
Median: 2.08
Q1: 1.43
Min: 0.36

WTS

Capital Goods industry group

2.80

Max: 5.22
Q3: 2.95
WTS: 2.80
Median: 2.08
Q1: 1.43
Min: 0.36

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Watts Water (WTS) carries debt-to-equity ratio of 0.08 against its industry range, while TransDigm (TDG) reports no figure this period.

TDG

Capital Goods industry group

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00
TDG: --

WTS

Capital Goods industry group

0.08

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
WTS: 0.08
Min: 0.00

TransDigm (TDG) vs. Watts Water (WTS): TDG does not report debt-to-equity ratio, so it has no value marker; WTS is benchmarked against the Capital Goods industry group.

Financial Strength Metrics

Financial strength metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Current Ratio (MRQ)	3.02	2.80
Debt / Equity (MRQ)	--	0.08
Net Debt / EBITDA	6.03	-0.40

Dividends

Dividend Yield (TTM)

TransDigm (TDG) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Watts Water (WTS) reports a yield of 0.66%, ranking against industry peers normally.

TDG

Capital Goods industry group

0.00%

Max: 2.66%
Q3: 1.14%
Median: 0.24%
TDG: 0.00%
Q1: 0.00%
Min: 0.00%

WTS

Capital Goods industry group

0.66%

Max: 2.66%
Q3: 1.14%
WTS: 0.66%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

TransDigm (TDG) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Watts Water (WTS) reports a payout of 17.24%, ranking against industry peers normally.

TDG

Capital Goods industry group

0.00%

Max: 67.39%
Q3: 28.02%
Median: 6.86%
TDG: 0.00%
Q1: 0.00%
Min: 0.00%

WTS

Capital Goods industry group

17.24%

Max: 67.39%
Q3: 28.02%
WTS: 17.24%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
Dividend Yield (TTM)	0.00%	0.66%
Dividend Payout Ratio (TTM)	0.00%	17.24%

Valuation

P/E Ratio (TTM)

Watts Water (WTS) at 25.95 is near its industry’s usual P/E ratio, while TransDigm (TDG) at 36.31 sits in the richer quartile — TDG needs stronger growth or earnings quality to justify the premium.

TDG

Capital Goods industry group

36.31

Max: 59.38
TDG: 36.31
Q3: 35.92
Median: 25.41
Q1: 19.47
Min: 3.03

WTS

Capital Goods industry group

25.95

Max: 59.38
Q3: 35.92
WTS: 25.95
Median: 25.41
Q1: 19.47
Min: 3.03

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Both TransDigm (TDG) at 6.61 and Watts Water (WTS) at 4.14 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

TDG

Capital Goods industry group

6.61

Max: 7.54
TDG: 6.61
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

WTS

Capital Goods industry group

4.14

Max: 7.54
WTS: 4.14
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

TransDigm (TDG) reports a negative P/B ratio of -6.74, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Watts Water (WTS) reports 4.98, ranking against industry peers normally.

TDG

Capital Goods industry group

-6.74

Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08
TDG: -6.74

WTS

Capital Goods industry group

4.98

Max: 9.66
Q3: 5.00
WTS: 4.98
Median: 3.12
Q1: 1.81
Min: -1.08

TransDigm (TDG) vs. Watts Water (WTS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for TransDigm (TDG) and Watts Water (WTS)
Metric	TDG	WTS
P/E Ratio (TTM)	36.31	25.95
P/S Ratio (TTM)	6.61	4.14
P/B Ratio (MRQ)	-6.74	4.98
Free Cash Flow Yield (TTM)	2.20%	2.21%