TDY vs HEI

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

3% revenue growth year-over-year, versus 7. 9% for Teledyne Technologies Incorporated (TDY). Teledyne Technologies Incorporated (TDY) offers the better valuation at 33. 4x trailing P/E (26. 2x forward), making it the more compelling value choice. Analysts rate Teledyne Technologies Incorporated (TDY) a "Buy" — based on 18 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, Teledyne Technologies Incorporated (TDY) is the cheapest at 33.

4x versus HEICO Corporation at 59. 1x. On forward P/E, Teledyne Technologies Incorporated is actually cheaper at 26. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Teledyne Technologies Incorporated wins at 2. 14x versus HEICO Corporation's 3. 14x.

Over the past 5 years, HEICO Corporation (HEI) delivered a total return of +105.

2%, compared to +44. 7% for Teledyne Technologies Incorporated (TDY). Over 10 years, the gap is even starker: HEI returned +823. 0% versus TDY's +573. 5%. 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), Teledyne Technologies Incorporated (TDY) is the lower-risk stock at 0.

95β versus HEICO Corporation's 1. 04β — meaning HEI is approximately 10% more volatile than TDY relative to the S&P 500. On balance sheet safety, Teledyne Technologies Incorporated (TDY) carries a lower debt/equity ratio of 25% 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 7. 9% for Teledyne Technologies Incorporated (TDY). On earnings-per-share growth, the picture is similar: HEICO Corporation grew EPS 33. 5% year-over-year, compared to 9. 7% for Teledyne Technologies 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.

HEICO Corporation (HEI) is the more profitable company, earning 15.

4% net margin versus 14. 6% for Teledyne Technologies Incorporated — meaning it keeps 15. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HEI leads at 22. 7% versus 18. 8% for TDY. At the gross margin level — before operating expenses — HEI leads at 39. 8%, 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, Teledyne Technologies Incorporated (TDY) is the more undervalued stock at a PEG of 2. 14x versus HEICO Corporation's 3. 14x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Teledyne Technologies Incorporated (TDY) trades at 26. 2x forward P/E versus 51. 6x for HEICO Corporation — 25. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HEI: 28. 1% to $371. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, HEICO Corporation (HEI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

04), +823. 0% 10Y return). Both have compounded well over 10 years (HEI: +823. 0%, TDY: +573. 5%), 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.

These companies operate in different sectors (TDY (Technology) and HEI (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TDY is a mid-cap quality compounder stock; HEI is a mid-cap high-growth stock. 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.