AL vs GE vs RTX vs HWM vs TDG

For growth investors, GE Aerospace (GE) is the stronger pick with 18.

5% revenue growth year-over-year, versus 9. 7% for RTX Corporation (RTX). Air Lease Corporation (AL) offers the better valuation at 7. 0x trailing P/E (12. 8x forward), making it the more compelling value choice. Analysts rate Air Lease Corporation (AL) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Air Lease Corporation (AL) is the cheapest at 7.

0x versus Howmet Aerospace Inc. at 73. 5x. On forward P/E, Air Lease Corporation is actually cheaper at 12. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Air Lease Corporation wins at 0. 79x versus GE Aerospace's 3. 39x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Howmet Aerospace Inc.

(HWM) delivered a total return of +715. 2%, compared to +56. 3% for Air Lease Corporation (AL). Over 10 years, the gap is even starker: HWM returned +1240% versus GE's +121. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Air Lease Corporation (AL) is the lower-risk stock at 0.

30β versus GE Aerospace's 1. 14β — meaning GE is approximately 284% more volatile than AL relative to the S&P 500. On balance sheet safety, Howmet Aerospace Inc. (HWM) carries a lower debt/equity ratio of 57% versus 2% for Air Lease Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GE Aerospace (GE) is pulling ahead at 18.

5% versus 9. 7% for RTX Corporation (RTX). On earnings-per-share growth, the picture is similar: Air Lease Corporation grew EPS 179. 0% year-over-year, compared to 25. 2% for TransDigm Group Incorporated. Over a 3-year CAGR, TDG leads at 17. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Air Lease Corporation (AL) is the more profitable company, earning 36.

1% net margin versus 7. 6% for RTX Corporation — meaning it keeps 36. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AL leads at 50. 5% versus 10. 0% for RTX. At the gross margin level — before operating expenses — TDG leads at 60. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Air Lease Corporation (AL) is the more undervalued stock at a PEG of 0. 79x versus GE Aerospace's 3. 39x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Air Lease Corporation (AL) trades at 12. 8x forward P/E versus 58. 7x for Howmet Aerospace Inc. — 45. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TDG: 30. 3% to $1617. 88.

All stocks in this comparison pay dividends.

TransDigm Group Incorporated (TDG) offers the highest yield at 13. 3%, versus 0. 2% for Howmet Aerospace Inc. (HWM).

For long-horizon retirement investors, Air Lease Corporation (AL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

30), 1. 3% yield, +129. 9% 10Y return). Both have compounded well over 10 years (AL: +129. 9%, GE: +121. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AL is a small-cap deep-value stock; GE is a large-cap high-growth stock; RTX is a large-cap quality compounder stock; HWM is a mid-cap quality compounder stock; TDG is a mid-cap income-oriented stock. AL, RTX, TDG pay a dividend while GE, HWM do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.