WallStSmart

GE Aerospace (GE)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 403% more annual revenue ($45.85B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 19.0%. TDG appears more attractively valued with a PEG of 2.91. GE earns a higher WallStSmart Score of 65/100 (C+).

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GEUndervalued (+24.0%)

Margin of Safety

+24.0%

Fair Value

$377.21

Current Price

$286.79

$90.42 discount

UndervaluedFair: $377.21Overvalued
TDGSignificantly Overvalued (-527.5%)

Margin of Safety

-527.5%

Fair Value

$211.34

Current Price

$1177.39

$966.05 premium

UndervaluedFair: $211.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GE5 strengths · Avg: 8.8/10
Market CapQuality
$302.51B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

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
$66.49B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.1x4/10

Trading at 16.1x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
4.942/10

Expensive relative to growth rate

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% 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 : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : TDG

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

Key Dynamics to Monitor

GE profiles as a growth stock while TDG is a mature play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 53/100), backed by strong 19.0% margins and 17.6% 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.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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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