HEI
HEICO Corporation
Aerospace & Defense
Market Cap$24.95B
5Y Perf.+194.1%
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Stock Comparison
HEI vs TDG
Revenue, margins, valuation, and 5-year total return — side by side.
TDG
TransDigm Group Incorporated
Aerospace & Defense
Market Cap$69.67B
5Y Perf.+190.4%
HEI vs TDG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HEI | TDG |
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $24.95B | $69.67B |
| Revenue (TTM) | $4.63B | $9.11B |
| Net Income (TTM) | $713M | $1.97B |
| Gross Margin | 30.4% | 59.0% |
| Operating Margin | 22.8% | 46.5% |
| Forward P/E | 52.8x | 31.8x |
| Total Debt | $2.19B | $30.03B |
| Cash & Equiv. | $218M | $2.81B |
HEI vs TDG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HEI
TDG
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| HEICO Corporation (HEI) | 100 | 294.1 | +194.1% |
| TransDigm Group Inc… (TDG) | 100 | 290.4 | +190.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HEI vs TDG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: TDG leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. HEICO Corporation is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
HEI
HEICO Corporation
The Growth Play
HEI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 16.3%, EPS growth 33.5%, 3Y rev CAGR 26.6%
- 8.4% 10Y total return vs TDG's 6.0%
- 16.3% revenue growth vs TDG's 11.2%
Best for: growth exposure and long-term compounding
TDG
TransDigm Group Incorporated
The Income Pick
TDG carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 2 yrs, beta 0.79, yield 13.4%
- Lower volatility, beta 0.79, current ratio 3.21x
- PEG 1.02 vs HEI's 3.21
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HEI | 16.3% revenue growth vs TDG's 11.2% |
| Value | TDG | Lower P/E (31.8x vs 52.8x), PEG 1.02 vs 3.21 |
| Quality / Margins | TDG | 21.6% margin vs HEI's 15.4% |
| Stability / Safety | TDG | Beta 0.79 vs HEI's 1.04 |
| Dividends | TDG | 13.4% yield, 2-year raise streak, vs HEI's 0.1% |
| Momentum (1Y) | HEI | +12.6% vs TDG's -4.9% |
| Efficiency (ROA) | TDG | 8.6% ROA vs HEI's 7.9%, ROIC 20.9% vs 12.6% |
HEI vs TDG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
HEI vs TDG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTDGLAGGINGHEI
HEIHEICO Corporation
0leads
TDGTransDigm Group Incor…
3leads
6 Total Categories
CATEGORYLEADERvs HEIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
TDG4/6
Valuation MetricsMultiples, price ratios, and targets
TDG4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
Tied
—
Total Returns1Y, 3Y, 5Y total returns with dividends
TDG4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
TDG leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TDG is the larger business by revenue, generating $9.1B annually — 2.0x HEI's $4.6B. TDG is the more profitable business, keeping 21.6% of every revenue dollar as net income compared to HEI's 15.4%.
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| RevenueTrailing 12 months | $4.6B | $9.1B |
| EBITDAEarnings before interest/tax | $1.2B | $4.6B |
| Net IncomeAfter-tax profit | $713M | $2.0B |
| Free Cash FlowCash after capex | $841M | $1.9B |
| Gross MarginGross profit ÷ Revenue | +30.4% | +59.0% |
| Operating MarginEBIT ÷ Revenue | +22.8% | +46.5% |
| Net MarginNet income ÷ Revenue | +15.4% | +21.6% |
| FCF MarginFCF ÷ Revenue | +18.1% | +20.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.4% | +13.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.5% | -13.1% |
TDG leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
TDG leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 38.5x trailing earnings, TDG trades at a 36% valuation discount to HEI's 60.5x P/E. Adjusting for growth (PEG ratio), TDG offers better value at 1.24x vs HEI's 3.68x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| Market CapShares × price | $25.0B | $69.7B |
| Enterprise ValueMkt cap + debt − cash | $26.9B | $96.9B |
| Trailing P/EPrice ÷ TTM EPS | 60.49x | 38.46x |
| Forward P/EPrice ÷ next-FY EPS est. | 52.79x | 31.79x |
| PEG RatioP/E ÷ EPS growth rate | 3.68x | 1.24x |
| EV / EBITDAEnterprise value multiple | 22.16x | 21.38x |
| Price / SalesMarket cap ÷ Revenue | 5.56x | 7.89x |
| Price / BookPrice ÷ Book value/share | 9.53x | — |
| Price / FCFMarket cap ÷ FCF | 28.97x | 38.36x |
TDG leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
Evenly matched — HEI and TDG each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| ROE (TTM)Return on equity | +12.9% | — |
| ROA (TTM)Return on assets | +7.9% | +8.6% |
| ROICReturn on invested capital | +12.6% | +20.9% |
| ROCEReturn on capital employed | +14.0% | +20.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.50x | — |
| Net DebtTotal debt minus cash | $2.0B | $27.2B |
| Cash & Equiv.Liquid assets | $218M | $2.8B |
| Total DebtShort + long-term debt | $2.2B | $30.0B |
| Interest CoverageEBIT ÷ Interest expense | 8.32x | 2.55x |
Evenly matched — HEI and TDG each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
TDG leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TDG five years ago would be worth $24,241 today (with dividends reinvested), compared to $21,539 for HEI. Over the past 12 months, HEI leads with a +12.6% total return vs TDG's -4.9%. The 3-year compound annual growth rate (CAGR) favors TDG at 22.9% vs HEI's 20.7% — a key indicator of consistent wealth creation.
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| YTD ReturnYear-to-date | -10.0% | -9.2% |
| 1-Year ReturnPast 12 months | +12.6% | -4.9% |
| 3-Year ReturnCumulative with dividends | +75.8% | +85.6% |
| 5-Year ReturnCumulative with dividends | +115.4% | +142.4% |
| 10-Year ReturnCumulative with dividends | +842.3% | +596.5% |
| CAGR (3Y)Annualised 3-year return | +20.7% | +22.9% |
TDG leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — HEI and TDG each lead in 1 of 2 comparable metrics.
Risk & Volatility
TDG is the less volatile stock with a 0.79 beta — it tends to amplify market swings less than HEI's 1.04 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HEI currently trades 81.9% from its 52-week high vs TDG's 76.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.04x | 0.79x |
| 52-Week HighHighest price in past year | $361.69 | $1623.83 |
| 52-Week LowLowest price in past year | $256.11 | $1123.61 |
| % of 52W HighCurrent price vs 52-week peak | +81.9% | +76.0% |
| RSI (14)Momentum oscillator 0–100 | 49.1 | 49.7 |
| Avg Volume (50D)Average daily shares traded | 699K | 371K |
Evenly matched — HEI and TDG each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — HEI and TDG each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates HEI as "Buy" and TDG as "Buy". Consensus price targets imply 31.1% upside for TDG (target: $1618) vs 25.2% for HEI (target: $371). TDG is the only dividend payer here at 13.41% yield — a key consideration for income-focused portfolios.
| Metric | HEIHEICO Corporation | TDGTransDigm Group I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $371.00 | $1617.88 |
| # AnalystsCovering analysts | 34 | 39 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | +13.4% |
| Dividend StreakConsecutive years of raises | 10 | 2 |
| Dividend / ShareAnnual DPS | $0.23 | $165.45 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.7% |
Evenly matched — HEI and TDG each lead in 1 of 2 comparable metrics.
Key Takeaway
TDG leads in 3 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 3 categories are tied.
Best OverallTransDigm Group Incorporated (TDG)Leads 3 of 6 categories
Loading custom metrics...
HEI vs TDG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HEI or TDG a better buy right now?
For growth investors, HEICO Corporation (HEI) is the stronger pick with 16.
3% revenue growth year-over-year, versus 11. 2% for TransDigm Group Incorporated (TDG). TransDigm Group Incorporated (TDG) offers the better valuation at 38. 5x trailing P/E (31. 8x 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.
02Which has the better valuation — HEI or TDG?
On trailing P/E, TransDigm Group Incorporated (TDG) is the cheapest at 38.
5x versus HEICO Corporation at 60. 5x. On forward P/E, TransDigm Group Incorporated is actually cheaper at 31. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: TransDigm Group Incorporated wins at 1. 02x versus HEICO Corporation's 3. 21x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — HEI or TDG?
Over the past 5 years, TransDigm Group Incorporated (TDG) delivered a total return of +142.
4%, compared to +115. 4% for HEICO Corporation (HEI). Over 10 years, the gap is even starker: HEI returned +842. 3% versus TDG's +596. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HEI or TDG?
By beta (market sensitivity over 5 years), TransDigm Group Incorporated (TDG) is the lower-risk stock at 0.
79β versus HEICO Corporation's 1. 04β — meaning HEI is approximately 32% more volatile than TDG relative to the S&P 500.
05Which is growing faster — HEI or TDG?
By revenue growth (latest reported year), HEICO Corporation (HEI) is pulling ahead at 16.
3% versus 11. 2% for TransDigm Group Incorporated (TDG). On earnings-per-share growth, the picture is similar: HEICO Corporation grew EPS 33. 5% year-over-year, compared to 25. 2% for TransDigm Group Incorporated. 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.
06Which has better profit margins — HEI or TDG?
TransDigm Group Incorporated (TDG) is the more profitable company, earning 23.
5% net margin versus 15. 4% for HEICO Corporation — 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 22. 7% for HEI. 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.
07Is HEI or TDG more undervalued right now?
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. 02x versus HEICO Corporation's 3. 21x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, TransDigm Group Incorporated (TDG) trades at 31. 8x forward P/E versus 52. 8x for HEICO Corporation — 21. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TDG: 31. 1% to $1617. 88.
08Which pays a better dividend — HEI or TDG?
In this comparison, TDG (13.
4% yield) pays a dividend. HEI does not pay a meaningful dividend and should not be held primarily for income.
09Is HEI or TDG better for a retirement portfolio?
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. 4% yield, +596. 5% 10Y return). Both have compounded well over 10 years (TDG: +596. 5%, HEI: +842. 3%), 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.
10What are the main differences between HEI and TDG?
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; TDG is a mid-cap income-oriented stock. TDG pays a dividend while HEI does 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.
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Revenue Growth>
%
(HEI: 14.4% · TDG: 13.9%)Net Margin>
%
(HEI: 15.4% · TDG: 21.6%)P/E Ratio<
x
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