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GE vs TDG
Which Stock Would AI Choose? GE Aerospace (GE) vs. TransDigm Group (TDG) Stock Comparison
Key Takeaways
- GE is a large-cap aerospace propulsion leader, while TDG is a proprietary aircraft components supplier with an aftermarket-heavy model.
- Both companies delivered strong recent earnings growth, but their capital structures, margins, and risk profiles are fundamentally different.
- GE has raised guidance repeatedly on robust engine and services demand, supported by a roughly $190 billion order backlog.
- TDG posts industry-leading margins (EBITDA, or earnings before interest, taxes, depreciation, and amortization, near 54%) and returned record capital to shareholders, but carries elevated leverage.
- Recent market positioning favors GE on trend consistency, while TDG faces decelerating aftermarket growth and higher interest costs.
Introduction
Investors screening the aerospace and defense sector frequently encounter two very different business models: GE and TDG. GE Aerospace designs, produces, and services aircraft engines at massive scale, while TransDigm Group specializes in proprietary, high-margin components for both commercial and military aircraft. This stock comparison is relevant for traders and long-term investors seeking to understand how relative performance, market positioning, and risk exposure diverge between an engine original equipment manufacturer (OEM) and a components supplier. By examining recent momentum, growth drivers, and financial profiles, readers can better assess which name may suit their objectives in the current market environment.
GE Overview and Recent Performance
GE Aerospace (NYSE: GE) is a pure-play aerospace propulsion and services business formed following the April 2024 spin-off of GE Vernova. The company operates through Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT), supporting an installed base of roughly 50,000 commercial and 30,000 military engines. It also participates in CFM International, a joint venture with Safran that produces the LEAP engine family powering the Boeing 737 MAX and Airbus A320neo.
In recent market activity, GE has demonstrated strong operational momentum, raising its full-year guidance on multiple occasions as material availability and engine output improved. Services revenue has grown at a double-digit pace, and the company has cited record LEAP engine deliveries. The latest full-year results showed revenue approaching $46 billion, with services growth of roughly 31% and a substantial order backlog. Despite this execution, shares have shown sensitivity to valuation: the stock trades at a premium multiple of around 40 times forward earnings, and a recent "beat-and-raise" quarter was met with profit-taking as investors weighed near-term margin pressure from research and development investment in next-generation engine programs.
TDG Overview and Recent Performance
TransDigm Group (NYSE: TDG) designs, manufactures, and supplies proprietary aerospace components, including engine control systems, actuators, pumps, cockpit safety equipment, and interior systems, across roughly 120 production sites worldwide. The company's value proposition centers on high-margin, aftermarket-rich products with significant pricing power.
In recent quarters, TDG has reported solid financial results. For its latest fiscal year, net sales rose approximately 11% to $8.83 billion, while net income increased roughly 21%. The company's "EBITDA As Defined" margin reached about 54%, among the highest in the industry. TDG has also been an aggressive allocator of capital, deploying around $6.7 billion across acquisitions and shareholder returns, including a record $90-per-share special dividend. Looking ahead, management's fiscal 2026 guidance implies continued growth but some margin dilution from recent acquisitions. Notably, TDG's commercial aftermarket growth has decelerated below the industry average, and rising interest expense from higher debt levels is a factor investors are monitoring.
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Head-to-Head Comparison
The two companies sit at opposite ends of the aerospace value chain, and this drives meaningful contrasts in financial profile and market behavior. GE Aerospace generates revenue from large engine programs and long-cycle services, with growth tied to aircraft production rates, airline flight activity, and shop-visit demand. Its business carries a massive installed base and backlog, but it is also exposed to execution risk on next-generation engine development and to commercial aviation cycles.
TDG, by contrast, is a components and subsystems supplier whose economics depend on proprietary product positions and recurring aftermarket demand. This model produces exceptionally high margins and strong cash generation, but it is financed with substantial leverage. TDG's net debt-to-EBITDA ratio sits near 5.8 times, and the company has taken on new debt to fund its special dividend and acquisitions, raising interest expense. In terms of recent momentum, GE has benefited from improving supply chains and rising engine output, while TDG's aftermarket growth has moderated. On valuation, both trade at premium multiples relative to the sector, though TDG's margin stability and GE's backlog provide different sources of support for sentiment.
Tickeron AI Verdict
Based on observable factors such as trend consistency, backlog strength, and near-term catalysts, Tickeron's AI would likely tilt toward GE in the current environment. The company's sustained revenue and earnings momentum, improving material availability, and large order backlog suggest a more durable trend, even if its premium valuation introduces sensitivity to short-term profit-taking. TDG offers exceptional margins and shareholder returns, but its elevated leverage, rising interest costs, and decelerating aftermarket growth present comparatively greater headwinds. This reflects a probabilistic assessment of relative positioning rather than a definitive prediction, and outcomes will depend on how each company navigates its respective risk factors in the months ahead.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is GE is a StrongBuy and TDG is a StrongBuy.
GE's RSI Oscillator ascending out of oversold territory
The RSI Indicator for GE moved out of oversold territory on October 27, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In 18 of the 20 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 37 of 46 cases where GE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for GE just turned positive on October 29, 2026. Looking at past instances where GE's MACD turned positive, the stock continued to rise in 38 of 50 cases over the following month. The odds of a continued upward trend are 76%.
Following a +5.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in 265 of 374 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
GE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GE as a result. In 46 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
The Aroon Indicator for GE entered a downward trend on October 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 13 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron SMR rating for this company is 21 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: GE's P/B Ratio (17.751) is slightly higher than the industry average of (5.106). P/E Ratio (35.340) is within average values for comparable stocks, (17.082). Projected Growth (PEG Ratio) (4.046) is also within normal values, averaging (2.564). Dividend Yield (0.006) settles around the average of (0.060) among similar stocks. P/S Ratio (6.523) is also within normal values, averaging (18.330).
TDG in upward trend: price rose above 50-day moving average on October 28, 2026
TDG moved above its 50-day moving average on October 28, 2026 date and that indicates a change from a downward trend to an upward trend. In 29 of 39 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 26, 2026. You may want to consider a long position or call options on TDG as a result. In 66 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
The 10-day moving average for TDG crossed bullishly above the 50-day moving average on October 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +4.04% 3-day Advance, the price is estimated to grow further. Considering data from situations where TDG advanced for three days, in 256 of 389 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
The Aroon Indicator entered an Uptrend today. In 191 of 318 cases where TDG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TDG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
TDG broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 13 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TDG's P/B Ratio (-6.463) is slightly lower than the industry average of (5.106). P/E Ratio (34.783) is within average values for comparable stocks, (17.082). Projected Growth (PEG Ratio) (2.942) is also within normal values, averaging (2.564). Dividend Yield (0.314) settles around the average of (0.060) among similar stocks. P/S Ratio (6.258) is also within normal values, averaging (18.330).
The Tickeron SMR rating for this company is 17 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 32 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating steady price growth. TDG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
GE | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 76 | 36 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 13 Undervalued | |
PROFIT vs RISK RATING 1..100 | 13 | 32 | |
SMR RATING 1..100 | 21 | 17 | |
PRICE GROWTH RATING 1..100 | 57 | 52 | |
P/E GROWTH RATING 1..100 | 61 | 67 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TDG's Valuation (13) in the Aerospace And Defense industry is significantly better than the same rating for GE (88) in the Industrial Conglomerates industry. This means that TDG’s stock grew significantly faster than GE’s over the last 12 months.
GE's Profit vs Risk Rating (13) in the Industrial Conglomerates industry is in the same range as TDG (32) in the Aerospace And Defense industry. This means that GE’s stock grew similarly to TDG’s over the last 12 months.
TDG's SMR Rating (17) in the Aerospace And Defense industry is in the same range as GE (21) in the Industrial Conglomerates industry. This means that TDG’s stock grew similarly to GE’s over the last 12 months.
TDG's Price Growth Rating (52) in the Aerospace And Defense industry is in the same range as GE (57) in the Industrial Conglomerates industry. This means that TDG’s stock grew similarly to GE’s over the last 12 months.
GE's P/E Growth Rating (61) in the Industrial Conglomerates industry is in the same range as TDG (67) in the Aerospace And Defense industry. This means that GE’s stock grew similarly to TDG’s over the last 12 months.
| GE | TDG | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | N/A |
| Stochastic ODDS (%) | 2 days ago 80% | 2 days ago 56% |
| Momentum ODDS (%) | 2 days ago 54% | 2 days ago 70% |
| MACD ODDS (%) | 2 days ago 76% | N/A |
| TrendWeek ODDS (%) | 2 days ago 71% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 64% |
| Advances ODDS (%) | 3 days ago 71% | 3 days ago 66% |
| Declines ODDS (%) | 9 days ago 54% | 18 days ago 54% |
| BollingerBands ODDS (%) | 2 days ago 73% | 2 days ago 66% |
| Aroon ODDS (%) | 2 days ago 61% | 2 days ago 60% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
GE’s FA Score shows that 2 FA rating(s) are green while TDG’s FA Score has 3 green FA rating(s).
- GE’s FA Score: 2 green, 3 red.
- TDG’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
GE’s TA Score shows that 5 TA indicator(s) are bullish while TDG’s TA Score has 5 bullish TA indicator(s).
- GE’s TA Score: 5 bullish, 3 bearish.
- TDG’s TA Score: 5 bullish, 3 bearish.
Price Growth
GE (@Aerospace & Defense) experienced а +5.66% price change this week, while TDG (@Aerospace & Defense) price change was +3.80% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +2.04%. For the same industry, the average monthly price growth was -10.06%, and the average quarterly price growth was -17.31%.
Reported Earning Dates
GE is expected to report earnings on Jan 26, 2027.
TDG is expected to report earnings on Nov 11, 2026.
Industries' Descriptions
@Aerospace & Defense (+2.04% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
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GE and
Correlation & Price change
A.I.dvisor indicates that over the last year, GE has been closely correlated with VSEC. These tickers have moved in lockstep 67% of the time. This A.I.-generated data suggests there is a high statistical probability that if GE jumps, then VSEC could also see price increases.
TDG and
Correlation & Price change
A.I.dvisor indicates that over the last year, TDG has been loosely correlated with GE. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if TDG jumps, then GE could also see price increases.
| Ticker / NAME | Correlation To TDG | 1D Price Change % | ||
|---|---|---|---|---|
| TDG | 100% | -2.47% | ||
| GE - TDG | 54% Loosely correlated | -3.59% | ||
| LOAR - TDG | 53% Loosely correlated | -4.17% | ||
| HEI - TDG | 53% Loosely correlated | -1.53% | ||
| SARO - TDG | 48% Loosely correlated | -1.72% | ||
| AIR - TDG | 45% Loosely correlated | -4.08% | ||
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