Eaton Corporation PLC (ETN)vsTransdigm Group Incorporated (TDG)
ETN
Eaton Corporation PLC
$433.01
+5.41%
INDUSTRIALS · Cap: $168.00B
TDG
Transdigm Group Incorporated
$1,159.98
+1.51%
INDUSTRIALS · Cap: $65.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Eaton Corporation PLC generates 201% more annual revenue ($27.45B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 14.9%. TDG appears more attractively valued with a PEG of 2.82. ETN earns a higher WallStSmart Score of 59/100 (C).
ETN
Buy59
out of 100
Grade: C
TDG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ETN.
Margin of Safety
-60.5%
Fair Value
$826.09
Current Price
$1159.98
$333.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Strong operational efficiency at 45.6%
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Trading at 8.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 12.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ETN
The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% 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 : ETN
The primary concerns for ETN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : TDG
The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
ETN profiles as a value stock while TDG is a mature play — different risk/reward profiles.
ETN carries more volatility with a beta of 1.16 — expect wider price swings.
TDG is growing revenue faster at 13.9% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
ETN scores higher overall (59/100 vs 53/100) and 13.1% 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.
Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
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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