WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Boeing Company generates 839% more annual revenue ($94.00B vs $10.01B). TDG leads profitability with a 21.3% profit margin vs 2.6%. BA appears more attractively valued with a PEG of 1.47. TDG earns a higher WallStSmart Score of 59/100 (C).

BA

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.95

TDG

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 7.5Value: 2.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BASignificantly Overvalued (-69.4%)

Margin of Safety

-69.4%

Fair Value

$124.25

Current Price

$210.28

$86.03 premium

UndervaluedFair: $124.25Overvalued
TDGSignificantly Overvalued (-52.1%)

Margin of Safety

-52.1%

Fair Value

$871.65

Current Price

$1140.32

$268.67 premium

UndervaluedFair: $871.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BA2 strengths · Avg: 9.5/10
Return on EquityProfitability
39.9%10/10

Every $100 of equity generates 40 in profit

Market CapQuality
$166.33B9/10

Large-cap with strong market position

TDG5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.0%10/10

Strong operational efficiency at 46.0%

Debt/EquityHealth
-2.7410/10

Conservative balance sheet, low leverage

Market CapQuality
$63.03B9/10

Large-cap with strong market position

Profit MarginProfitability
21.3%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
22.5%8/10

Revenue surging 22.5% year-over-year

Areas to Watch

BA4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

P/E RatioValuation
73.6x2/10

Premium valuation, high expectations priced in

Price/BookValuation
27.2x2/10

Trading at 27.2x book value

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
3.052/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.602/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BA

The strongest argument for BA centers on Return on Equity, Market Cap. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 21.3% and operating margin at 46.0%. Revenue growth of 22.5% demonstrates continued momentum.

Bear Case : BA

The primary concerns for BA are Profit Margin, Operating Margin, P/E Ratio. A P/E of 73.6x leaves little room for execution misses. Debt-to-equity of 7.52 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 growth play — different risk/reward profiles.

BA carries more volatility with a beta of 1.21 — expect wider price swings.

TDG is growing revenue faster at 22.5% — sustainability is the question.

TDG generates stronger free cash flow (650M), providing more financial flexibility.

Bottom Line

TDG scores higher overall (59/100 vs 52/100), backed by strong 21.3% margins and 22.5% revenue growth. Both earn "Buy" and "Buy" 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.

Visit Website →

Want to dig deeper into these stocks?