TransDigm Group (NYSE: TDG) is one of 61 public companies in the “AEROSPACE/DEFENSE” industry, but how does it weigh in compared to its peers? We will compare TransDigm Group to related businesses based on the strength of its institutional ownership, earnings, profitability, dividends, risk, valuation and analyst recommendations.

Volatility and Risk

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TransDigm Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, TransDigm Group’s peers have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares TransDigm Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TransDigm Group $3.50 billion $596.88 million 24.90
TransDigm Group Competitors $8.40 billion $590.33 million 21.82

TransDigm Group’s peers have higher revenue, but lower earnings than TransDigm Group. TransDigm Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for TransDigm Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransDigm Group 1 4 10 0 2.60
TransDigm Group Competitors 367 2119 2950 100 2.50

TransDigm Group currently has a consensus target price of $319.54, indicating a potential upside of 5.55%. As a group, “AEROSPACE/DEFENSE” companies have a potential upside of 6.61%. Given TransDigm Group’s peers higher probable upside, analysts clearly believe TransDigm Group has less favorable growth aspects than its peers.

Insider and Institutional Ownership

55.9% of shares of all “AEROSPACE/DEFENSE” companies are held by institutional investors. 11.5% of TransDigm Group shares are held by company insiders. Comparatively, 8.5% of shares of all “AEROSPACE/DEFENSE” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares TransDigm Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransDigm Group 18.95% -27.70% 6.47%
TransDigm Group Competitors -1.19% -271.24% 8.25%

Summary

TransDigm Group beats its peers on 8 of the 13 factors compared.

TransDigm Group Company Profile

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes operations that primarily develop and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, engineered latching and locking devices, and seat belts and safety restraints.

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