TDY vs HII vs TXT vs LDOS vs HEI

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

3% revenue growth year-over-year, versus 3. 1% for Leidos Holdings, Inc. (LDOS). Leidos Holdings, Inc. (LDOS) offers the better valuation at 11. 8x trailing P/E (11. 1x 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, Leidos Holdings, Inc.

(LDOS) is the cheapest at 11. 8x versus HEICO Corporation at 59. 1x. On forward P/E, Leidos Holdings, Inc. is actually cheaper at 11. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Textron Inc. wins at 0. 46x versus HEICO Corporation's 3. 14x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

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

2%, compared to +33. 4% for Leidos Holdings, Inc. (LDOS). Over 10 years, the gap is even starker: HEI returned +823. 0% versus HII's +130. 7%. 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), Leidos Holdings, Inc.

(LDOS) is the lower-risk stock at 0. 42β versus HEICO Corporation's 1. 04β — meaning HEI is approximately 145% more volatile than LDOS relative to the S&P 500. On balance sheet safety, Teledyne Technologies Incorporated (TDY) carries a lower debt/equity ratio of 25% versus 119% for Leidos Holdings, Inc. — giving it more financial flexibility in a downturn.

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

3% versus 3. 1% for Leidos Holdings, Inc. (LDOS). 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 4. 8% for Huntington Ingalls Industries, Inc. — 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 4. 9% for HII. 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, Textron Inc. (TXT) is the more undervalued stock at a PEG of 0. 46x versus HEICO Corporation's 3. 14x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Leidos Holdings, Inc. (LDOS) trades at 11. 1x forward P/E versus 51. 6x for HEICO Corporation — 40. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LDOS: 55. 5% to $204. 00.

In this comparison, HII (1.

7% yield), LDOS (1. 2% yield), TXT (0. 1% yield) pay a dividend. TDY, HEI do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Leidos Holdings, Inc.

(LDOS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 42), 1. 2% yield, +223. 8% 10Y return). Both have compounded well over 10 years (LDOS: +223. 8%, TXT: +142. 8%), 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 HII (Industrials) and TXT (Industrials) and LDOS (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; HII is a mid-cap quality compounder stock; TXT is a mid-cap deep-value stock; LDOS is a mid-cap deep-value stock; HEI is a mid-cap high-growth stock. HII, LDOS pay a dividend while TDY, TXT, HEI 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.