WallStSmart

The Boeing Company (BA)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Boeing Company generates 912% more annual revenue ($92.18B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 2.5%. TDG appears more attractively valued with a PEG of 2.85. TDG earns a higher WallStSmart Score of 53/100 (C-).

BA

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 2.0Quality: 4.0
Piotroski: 5/9Altman Z: 1.01

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 2.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BASignificantly Overvalued (-42.3%)

Margin of Safety

-42.3%

Fair Value

$161.59

Current Price

$229.93

$68.34 premium

UndervaluedFair: $161.59Overvalued
TDGSignificantly Overvalued (-60.2%)

Margin of Safety

-60.2%

Fair Value

$827.74

Current Price

$1233.37

$405.63 premium

UndervaluedFair: $827.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BA2 strengths · Avg: 9.5/10
Return on EquityProfitability
170.0%10/10

Every $100 of equity generates 170 in profit

Market CapQuality
$179.24B9/10

Large-cap with strong market position

TDG4 strengths · Avg: 9.5/10
Operating MarginProfitability
45.6%10/10

Strong operational efficiency at 45.6%

Debt/EquityHealth
-3.2310/10

Conservative balance sheet, low leverage

Market CapQuality
$65.20B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

BA4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
1.7%3/10

Operating margin of 1.7%

PEG RatioValuation
24.632/10

Expensive relative to growth rate

P/E RatioValuation
90.2x2/10

Premium valuation, high expectations priced in

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.852/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : BA

The strongest argument for BA centers on Return on Equity, Market Cap. Revenue growth of 14.0% demonstrates continued momentum.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 22.2% and operating margin at 45.6%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : BA

The primary concerns for BA are Profit Margin, Operating Margin, PEG Ratio. A P/E of 90.2x leaves little room for execution misses. Debt-to-equity of 9.92 is elevated, increasing financial risk.

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

BA profiles as a value stock while TDG is a mature play — different risk/reward profiles.

BA carries more volatility with a beta of 1.13 — expect wider price swings.

BA is growing revenue faster at 14.0% — sustainability is the question.

TDG generates stronger free cash flow (772M), providing more financial flexibility.

Bottom Line

TDG scores higher overall (53/100 vs 48/100), backed by strong 22.2% margins and 13.9% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The Boeing Company

INDUSTRIALS · AEROSPACE & DEFENSE · USA

The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services.

Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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