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HEI vs TDG
Which Stock Would AI Choose? HEICO Corporation (HEI) vs. TransDigm Group (TDG) Stock Comparison
Key Takeaways
- Both HEI and TDG are aerospace and defense suppliers reporting double-digit revenue growth, but their business models and risk profiles differ sharply.
- TDG operates a highly leveraged, acquisition-driven model with exceptional margins, while HEI runs a more diversified, lower-leverage structure spanning flight support and electronics.
- Recent market activity shows TDG with stronger year-to-date and one-year relative performance, while HEI trades at a premium valuation on trailing earnings.
- Both companies raised or reiterated robust forward guidance on resilient commercial aerospace aftermarket demand.
Introduction
Aerospace suppliers have been a focal point for investors as global air travel demand and defense spending remain supportive. HEI (HEICO Corporation) and TDG (TransDigm Group Incorporated) are two of the sector's most closely watched names, yet they represent very different approaches to generating shareholder value. This stock comparison examines their relative performance, market positioning, and risk profiles, offering a framework for traders and investors evaluating which name better fits the current environment. Whether the focus is on compounding quality, balance-sheet strength, or momentum, this head-to-head review highlights the trade-offs between these two aerospace leaders.
HEI Overview and Recent Performance
HEI, or HEICO Corporation, manufactures and services aerospace, defense, and electronic components through two segments: the Flight Support Group and the Electronic Technologies Group. In recent weeks, the company has delivered record results, with third-quarter fiscal 2026 net sales rising 23% and net income climbing 33% year over year. The Electronic Technologies Group stood out, posting 36% net sales growth supported by robust organic demand across defense and aerospace products and contributions from acquisitions.
Relative performance has been more measured, however. Over the trailing one-year period, HEI has trailed the broader market, and its shares carry a trailing price-to-earnings ratio well above the sector average. Investors have responded positively to sustained operating-margin expansion and strong cash-flow generation, while a premium valuation and a recent pullback from highs reflect ongoing scrutiny of growth sustainability.
TDG Overview and Recent Performance
TDG, or TransDigm Group Incorporated, is a leading designer and producer of highly engineered aircraft components used on nearly all commercial and military aircraft in service. Its proprietary aftermarket parts generate high-margin, recurring revenue. In recent market activity, the company reported third-quarter fiscal 2026 sales up 23% to $2.74 billion, with 13% organic growth across all three major aerospace channels, and raised its full-year sales and adjusted earnings guidance.
TDG has shown stronger one-year and year-to-date relative performance than HEI, supported by a 20%-plus operating profit margin and disciplined capital returns through buybacks. However, elevated debt levels, reflected in a net leverage ratio of roughly 5.8 times, and acquisition-related integration risk remain central considerations for investors weighing the stock's momentum against its financial structure.
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Head-to-Head Comparison
The two companies diverge most clearly in capital structure and operating model. TDG concentrates on proprietary, high-margin aerospace components and pursues an aggressive acquisition strategy funded partly by debt, yielding operating margins near 46% but also a notably higher leverage profile. HEI pairs its aftermarket-parts business with a growing electronics segment, providing diversification while maintaining a comparatively conservative balance sheet with a debt-to-equity ratio below 50%.
On valuation, HEI trades at a steeper trailing earnings multiple, reflecting its lower leverage and diversified growth, whereas TDG offers a lower trailing and forward multiple, partly discounted for its debt burden. Momentum and sentiment have favored TDG in recent periods, while HEI has consolidated below prior highs. Both share exposure to commercial aerospace aftermarket and defense cycles, making them similarly sensitive to air-traffic trends and production rates, but their differing financial structures create distinct risk-reward profiles.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward TDG in the current environment, reflecting its stronger recent trend consistency, upward guidance revisions, and superior one-year and year-to-date relative performance. The company's resilient aftermarket demand and expanding backlog provide visible catalysts, even as its leverage warrants caution. HEI remains a high-quality compounder, but its premium valuation and softer recent momentum suggest a less compelling near-term setup by algorithmic measures. This assessment is probabilistic and based on current positioning rather than a definitive forecast.
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 HEI is a StrongBuy and TDG is a StrongBuy.
HEI in upward trend: price rose above 50-day moving average on October 29, 2026
HEI moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend. In 37 of 51 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 73%.
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 HEI as a result. In 61 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 72%.
Following a +5.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where HEI advanced for three days, in 211 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Bearish Trend Analysis
The 10-day RSI Indicator for HEI moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 27 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 60%.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 50-day moving average for HEI moved below the 200-day moving average on October 21, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HEI 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 56%.
HEI 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.
The Aroon Indicator for HEI entered a downward trend on October 16, 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 20 (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 47 (best 1 - 100 worst), indicating steady price growth. HEI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 48 (best 1 - 100 worst), indicating 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 PE Growth Rating for this company is 71 (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.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly 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: P/B Ratio (9.077) is normal, around the industry mean (5.106). P/E Ratio (52.768) is within average values for comparable stocks, (17.082). Projected Growth (PEG Ratio) (2.092) is also within normal values, averaging (2.564). Dividend Yield (0.002) settles around the average of (0.060) among similar stocks. P/S Ratio (8.163) is also within normal values, averaging (18.330).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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.
HEI | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 36 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 82 Overvalued | 13 Undervalued | |
PROFIT vs RISK RATING 1..100 | 20 | 32 | |
SMR RATING 1..100 | 48 | 17 | |
PRICE GROWTH RATING 1..100 | 47 | 52 | |
P/E GROWTH RATING 1..100 | 71 | 67 | |
SEASONALITY SCORE 1..100 | 85 | 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 HEI (82). This means that TDG’s stock grew significantly faster than HEI’s over the last 12 months.
HEI's Profit vs Risk Rating (20) in the Aerospace And Defense industry is in the same range as TDG (32). This means that HEI’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 HEI (48). This means that TDG’s stock grew similarly to HEI’s over the last 12 months.
HEI's Price Growth Rating (47) in the Aerospace And Defense industry is in the same range as TDG (52). This means that HEI’s stock grew similarly to TDG’s over the last 12 months.
TDG's P/E Growth Rating (67) in the Aerospace And Defense industry is in the same range as HEI (71). This means that TDG’s stock grew similarly to HEI’s over the last 12 months.
| HEI | TDG | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 60% | N/A |
| Stochastic ODDS (%) | 2 days ago 63% | 2 days ago 56% |
| Momentum ODDS (%) | 2 days ago 72% | 2 days ago 70% |
| MACD ODDS (%) | N/A | N/A |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 59% | 2 days ago 64% |
| Advances ODDS (%) | 3 days ago 62% | 3 days ago 66% |
| Declines ODDS (%) | 11 days ago 56% | 18 days ago 54% |
| BollingerBands ODDS (%) | 2 days ago 50% | 2 days ago 66% |
| Aroon ODDS (%) | 2 days ago 77% | 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).
HEI’s FA Score shows that 1 FA rating(s) are green while TDG’s FA Score has 3 green FA rating(s).
- HEI’s FA Score: 1 green, 4 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.
HEI’s TA Score shows that 3 TA indicator(s) are bullish while TDG’s TA Score has 5 bullish TA indicator(s).
- HEI’s TA Score: 3 bullish, 6 bearish.
- TDG’s TA Score: 5 bullish, 3 bearish.
Price Growth
HEI (@Aerospace & Defense) experienced а +8.07% 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
HEI is expected to report earnings on Dec 17, 2026.
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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HEI and
Correlation & Price change
A.I.dvisor indicates that over the last year, HEI has been loosely correlated with GE. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if HEI jumps, then GE could also see price increases.
| Ticker / NAME | Correlation To HEI | 1D Price Change % | ||
|---|---|---|---|---|
| HEI | 100% | -1.53% | ||
| GE - HEI | 63% Loosely correlated | -3.59% | ||
| LOAR - HEI | 60% Loosely correlated | -4.17% | ||
| VSEC - HEI | 55% Loosely correlated | -4.64% | ||
| SARO - HEI | 55% Loosely correlated | -1.72% | ||
| HWM - HEI | 54% Loosely correlated | -3.26% | ||
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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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