Seek Returns logo

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

Updated on

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

Company Profile

SymbolTDGXPO
Company NameTransDigm Group IncorporatedXPO, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseGround Transportation
Market Capitalization73.30 billion USD14.95 billion USD
ExchangeNYSENYSE
Listing DateMarch 15, 2006October 7, 2003
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolTDGXPO
5-Day Price Return1.39%-0.65%
13-Week Price Return-13.32%2.36%
26-Week Price Return-5.45%16.60%
52-Week Price Return-6.05%15.91%
Month-to-Date Return-5.78%-0.33%
Year-to-Date Return4.00%-1.43%
10-Day Avg. Volume0.28M1.23M
3-Month Avg. Volume0.32M1.22M
3-Month Volatility32.04%39.42%
Beta1.022.06

Profitability

Return on Equity (TTM)

TDG

37.11%

Aerospace & Defense Industry

Max
37.11%
Q3
20.14%
Median
11.72%
Q1
6.30%
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.

XPO

20.71%

Ground Transportation Industry

Max
23.35%
Q3
13.74%
Median
9.05%
Q1
6.86%
Min
1.73%

In the upper quartile for the Ground Transportation industry, XPO’s Return on Equity of 20.71% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TDG vs. XPO: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Net Profit Margin (TTM)

TDG

22.52%

Aerospace & Defense Industry

Max
13.66%
Q3
8.61%
Median
6.59%
Q1
4.92%
Min
1.01%

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.

XPO

4.31%

Ground Transportation Industry

Max
32.19%
Q3
17.08%
Median
7.19%
Q1
4.45%
Min
-5.54%

Falling into the lower quartile for the Ground Transportation industry, XPO’s Net Profit Margin of 4.31% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

TDG vs. XPO: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Operating Profit Margin (TTM)

TDG

45.94%

Aerospace & Defense Industry

Max
22.35%
Q3
12.83%
Median
9.29%
Q1
6.38%
Min
-2.15%

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.

XPO

8.35%

Ground Transportation Industry

Max
42.90%
Q3
23.80%
Median
10.93%
Q1
7.06%
Min
-12.94%

XPO’s Operating Profit Margin of 8.35% is around the midpoint for the Ground Transportation industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolTDGXPO
Return on Equity (TTM)37.11%20.71%
Return on Assets (TTM)8.43%4.36%
Net Profit Margin (TTM)22.52%4.31%
Operating Profit Margin (TTM)45.94%8.35%
Gross Profit Margin (TTM)60.12%59.99%

Financial Strength

Current Ratio (MRQ)

TDG

3.13

Aerospace & Defense Industry

Max
3.35
Q3
2.03
Median
1.24
Q1
1.04
Min
0.77

TDG’s Current Ratio of 3.13 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

XPO

1.02

Ground Transportation Industry

Max
2.00
Q3
1.31
Median
0.98
Q1
0.74
Min
0.35

XPO’s Current Ratio of 1.02 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.

TDG vs. XPO: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Debt-to-Equity Ratio (MRQ)

TDG

5.41

Aerospace & Defense Industry

Max
1.72
Q3
0.96
Median
0.63
Q1
0.37
Min
0.03

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.

XPO

1.91

Ground Transportation Industry

Max
2.51
Q3
1.48
Median
1.02
Q1
0.48
Min
0.00

XPO’s leverage is in the upper quartile of the Ground Transportation industry, with a Debt-to-Equity Ratio of 1.91. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

TDG

2.72

Aerospace & Defense Industry

Max
36.57
Q3
19.08
Median
7.25
Q1
2.65
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.

XPO

3.12

Ground Transportation Industry

Max
59.80
Q3
25.78
Median
8.23
Q1
2.52
Min
-24.57

XPO’s Interest Coverage Ratio of 3.12 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolTDGXPO
Current Ratio (MRQ)3.131.02
Quick Ratio (MRQ)2.071.02
Debt-to-Equity Ratio (MRQ)5.411.91
Interest Coverage Ratio (TTM)2.723.12

Growth

Revenue Growth

TDG vs. XPO: 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. XPO: 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

5.88%

Aerospace & Defense Industry

Max
2.72%
Q3
1.45%
Median
0.48%
Q1
0.08%
Min
0.00%

TDG’s Dividend Yield of 5.88% 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.

XPO

0.00%

Ground Transportation Industry

Max
5.29%
Q3
2.57%
Median
1.59%
Q1
0.71%
Min
0.00%

XPO 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. XPO: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Dividend Payout Ratio (TTM)

TDG

891.68%

Aerospace & Defense Industry

Max
110.40%
Q3
50.43%
Median
17.11%
Q1
0.46%
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.

XPO

0.00%

Ground Transportation Industry

Max
149.12%
Q3
75.08%
Median
41.35%
Q1
16.42%
Min
0.00%

XPO 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. XPO: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Dividend at a Glance

SymbolTDGXPO
Dividend Yield (TTM)5.88%0.00%
Dividend Payout Ratio (TTM)891.68%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

TDG

38.70

Aerospace & Defense Industry

Max
67.20
Q3
55.74
Median
33.28
Q1
27.49
Min
15.02

TDG’s P/E Ratio of 38.70 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.

XPO

43.68

Ground Transportation Industry

Max
39.04
Q3
24.45
Median
17.51
Q1
12.92
Min
5.87

At 43.68, XPO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Ground Transportation industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

TDG vs. XPO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Price-to-Sales Ratio (TTM)

TDG

8.72

Aerospace & Defense Industry

Max
9.06
Q3
4.87
Median
2.47
Q1
1.61
Min
0.33

TDG’s P/S Ratio of 8.72 is in the upper echelon for the Aerospace & Defense 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.

XPO

1.88

Ground Transportation Industry

Max
2.82
Q3
2.22
Median
1.41
Q1
0.88
Min
0.24

XPO’s P/S Ratio of 1.88 aligns with the market consensus for the Ground Transportation industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

TDG

10.13

Aerospace & Defense Industry

Max
14.90
Q3
8.93
Median
4.70
Q1
3.03
Min
0.83

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.

XPO

8.35

Ground Transportation Industry

Max
5.27
Q3
3.03
Median
1.40
Q1
1.18
Min
0.67

At 8.35, XPO’s P/B Ratio is at an extreme premium to the Ground Transportation 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. XPO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Valuation at a Glance

SymbolTDGXPO
Price-to-Earnings Ratio (TTM)38.7043.68
Price-to-Sales Ratio (TTM)8.721.88
Price-to-Book Ratio (MRQ)10.138.35
Price-to-Free Cash Flow Ratio (TTM)39.2371.76