PACCAR Inc (PCAR)vsTransdigm Group Incorporated (TDG)
PCAR
PACCAR Inc
$118.07
+1.83%
INDUSTRIALS · Cap: $59.41B
TDG
Transdigm Group Incorporated
$1,238.74
+0.87%
INDUSTRIALS · Cap: $69.75B
Smart Verdict
WallStSmart Research — data-driven comparison
PACCAR Inc generates 192% more annual revenue ($27.78B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 8.9%. PCAR appears more attractively valued with a PEG of 1.12. TDG earns a higher WallStSmart Score of 57/100 (C).
PCAR
Buy56
out of 100
Grade: C
TDG
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.6%
Fair Value
$84.77
Current Price
$118.06
$33.30 premium
Margin of Safety
-63.3%
Fair Value
$812.02
Current Price
$1238.74
$426.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 46.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
18.3% revenue growth
Areas to Watch
Weak financial health signals
Revenue declined 8.9%
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PCAR
The strongest argument for PCAR centers on Market Cap. PEG of 1.12 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 21.9% and operating margin at 46.7%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : PCAR
The primary concerns for PCAR are Piotroski F-Score, Revenue Growth.
Bear Case : TDG
The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
PCAR profiles as a value stock while TDG is a growth play — different risk/reward profiles.
PCAR carries more volatility with a beta of 1.03 — expect wider price swings.
TDG is growing revenue faster at 18.3% — sustainability is the question.
PCAR generates stronger free cash flow (825M), providing more financial flexibility.
Bottom Line
TDG scores higher overall (57/100 vs 56/100), backed by strong 21.9% margins and 18.3% 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.
PACCAR Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
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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