HEI vs SPR vs TDG vs WWD

For growth investors, HEICO Corporation (HEI) is the stronger pick with 16.

3% revenue growth year-over-year, versus 4. 4% for Spirit AeroSystems Holdings, Inc. (SPR). TransDigm Group Incorporated (TDG) offers the better valuation at 38. 7x trailing P/E (32. 0x forward), making it the more compelling value choice. Analysts rate HEICO Corporation (HEI) a "Buy" — based on 34 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, TransDigm Group Incorporated (TDG) is the cheapest at 38.

7x versus HEICO Corporation at 59. 1x. On forward P/E, Spirit AeroSystems Holdings, Inc. is actually cheaper at 31. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: TransDigm Group Incorporated wins at 1. 03x versus HEICO Corporation's 3. 14x — a reasonable growth-adjusted valuation.

Over the past 5 years, Woodward, Inc.

(WWD) delivered a total return of +188. 9%, compared to -10. 3% for Spirit AeroSystems Holdings, Inc. (SPR). Over 10 years, the gap is even starker: HEI returned +823. 0% versus SPR's -11. 1%. 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), Spirit AeroSystems Holdings, Inc.

(SPR) is the lower-risk stock at 0. 67β versus Woodward, Inc. 's 1. 19β — meaning WWD is approximately 78% more volatile than SPR relative to the S&P 500. On balance sheet safety, Woodward, Inc. (WWD) carries a lower debt/equity ratio of 28% versus 50% for HEICO Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), HEICO Corporation (HEI) is pulling ahead at 16.

3% versus 4. 4% for Spirit AeroSystems Holdings, Inc. (SPR). On earnings-per-share growth, the picture is similar: HEICO Corporation grew EPS 33. 5% year-over-year, compared to -208. 4% for Spirit AeroSystems Holdings, Inc.. Over a 3-year CAGR, HEI leads at 26. 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.

TransDigm Group Incorporated (TDG) is the more profitable company, earning 23.

5% net margin versus -33. 9% for Spirit AeroSystems Holdings, Inc. — meaning it keeps 23. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TDG leads at 47. 2% versus -28. 3% for SPR. 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, TransDigm Group Incorporated (TDG) is the more undervalued stock at a PEG of 1. 03x versus HEICO Corporation's 3. 14x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Spirit AeroSystems Holdings, Inc. (SPR) trades at 31. 5x forward P/E versus 51. 6x for HEICO Corporation — 20. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TDG: 30. 3% to $1617. 88.

In this comparison, TDG (13.

3% yield), WWD (0. 3% yield) pay a dividend. HEI, SPR do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, TransDigm Group Incorporated (TDG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

79), 13. 3% yield, +595. 3% 10Y return). Both have compounded well over 10 years (TDG: +595. 3%, WWD: +600. 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: HEI is a mid-cap high-growth stock; SPR is a small-cap quality compounder stock; TDG is a mid-cap income-oriented stock; WWD is a mid-cap quality compounder stock. TDG pays a dividend while HEI, SPR, WWD 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.