HEICO vs TransDigm Which Is Stronger?

HEICO and TransDigm are two major players in the aerospace and defense industry, both known for their innovative products and strong financial performance. HEICO specializes in providing aerospace parts and components while TransDigm focuses on designing and manufacturing aircraft components and systems. Both companies have seen substantial growth in recent years, but their stock performances have differed. HEICO has been a consistent performer with steady growth, while TransDigm has shown more volatility. Investors looking to invest in the aerospace industry should carefully consider the strengths and weaknesses of both HEICO and TransDigm stocks.

HEICO or TransDigm ?

When comparing HEICO and TransDigm , different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between HEICO and TransDigm .

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. HEICO has a dividend yield of 0.08%, while TransDigm has a dividend yield of 5.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HEICO reports a 5-year dividend growth of 6.28% year and a payout ratio of 6.34%. On the other hand, TransDigm reports a 5-year dividend growth of 0.00% year and a payout ratio of 126.35%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with HEICO P/E ratio at 74.22 and TransDigm 's P/E ratio at 45.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HEICO P/B ratio is 10.02 while TransDigm 's P/B ratio is -11.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HEICO has seen a 5-year revenue growth of 0.61%, while TransDigm 's is 0.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HEICO's ROE at 14.28% and TransDigm 's ROE at -42.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $254.14 for HEICO and $1251.09 for TransDigm . Over the past year, HEICO's prices ranged from $169.70 to $283.60, with a yearly change of 67.12%. TransDigm 's prices fluctuated between $972.08 and $1451.32, with a yearly change of 49.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.