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HEI vs TDG
Which Stock Would AI Choose? HEICO Corporation (HEI) vs. TransDigm Group Incorporated (TDG) Stock Comparison
Key Takeaways
- Both HEI and TDG lead in aerospace and defense components, capitalizing on aftermarket demand amid aviation recovery and defense needs.
- HEI delivered stronger year-to-date gains of about 17%, outperforming TDG's 13% in recent market activity.
- TDG maintains a larger market capitalization of $65 billion versus HEI's $37 billion, reflecting scale advantages.
- Recent mergers and acquisitions (M&A) activity, including parts suppliers, bolsters growth prospects for both stocks.
- Analyst price targets indicate potential upside, with HEI at $354 and TDG at $1,537.
- Tickeron's AI analysis favors HEI for trend consistency and momentum.
Introduction
HEICO Corporation (HEI) and TransDigm Group Incorporated (TDG) stand out as key players in the aerospace and defense sector, specializing in aftermarket parts and components. This comparison is particularly relevant for investors and traders eyeing industrials amid recovering air travel, sustained defense budgets, and supply chain dynamics. Both stocks offer exposure to high-margin aftermarket services, but differ in scale, focus, and recent momentum. Understanding their relative performance, growth drivers, and market positioning aids in assessing opportunities in this cyclical yet resilient industry.
HEI Overview and Recent Performance
HEICO Corporation (HEI), founded in 1957, operates through its Flight Support Group and Electronic Technologies Group, providing replacement parts, repair services, and electro-optical systems for commercial aviation, defense, and industrial applications. With 11,100 employees, it emphasizes high-margin aftermarket solutions.
In recent market activity, HEI shares traded around $268, near the lower end of a 52-week range of $256 to $362, reflecting a year-to-date gain of 17% but pullback from peaks. Sentiment has been supported by strategic acquisitions like Sherwood Avionics and Southwest Antennas, expanding into avionics and antennas markets, alongside contributions to NASA Artemis missions. Strong quarterly earnings beats and robust liquidity have underpinned stability, though elevated price-to-earnings (P/E) ratio of 53 signals growth expectations amid aerospace demand.
TDG Overview and Recent Performance
TransDigm Group Incorporated (TDG), founded in 1993, designs and supplies aircraft components via Power & Control, Airframe, and Non-Aviation segments, focusing on proprietary aftermarket parts for engines, airframes, and military applications. Employing 16,500 people, it serves airlines, OEMs, and defense agencies.
Recent weeks saw TDG shares around $1,154, within a 52-week range of $1,124 to $1,624, with year-to-date returns of 13%. Performance reflects solid quarterly results with revenue growth and raised guidance, fueled by aftermarket strength and buybacks, though offset by debt for acquisitions. Upcoming earnings have drawn positive analyst focus on segment outlooks, despite a lower P/E of 37 compared to peers, amid volatility from market rotations.
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Head-to-Head Comparison
HEI and TDG share aerospace aftermarket exposure but diverge in business models: HEI blends repair services and electronics for broader diversification, while TDG prioritizes proprietary components for higher margins. Growth drivers include M&A for both, with HEI targeting niche expansions and TDG leveraging scale via buybacks.
Recent momentum favors HEI with superior YTD returns, though TDG shows resilience in earnings. Risk factors encompass cyclical aviation demand and debt loads—TDG's larger balance sheet amplifies leverage. Market sentiment tilts positive for both amid defense tailwinds, but HEI's lower beta (0.95 vs. 0.88) suggests relative stability.
Tickeron AI Verdict
Tickeron’s AI currently leans toward HEI over TDG, citing stronger trend consistency, recent earnings momentum, and one-year returns of 19% versus 2%. While TDG excels in scale and profitability, HEI's acquisition-driven catalysts position it favorably in the short term, with probabilistic upside in aerospace recovery.
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. Disclaimers and Limitations
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 Hold and TDG is a Hold.
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 undervalued. 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 whileTDG’s FA Score has 2 green FA rating(s).
- HEI’s FA Score: 1 green, 4 red.
- TDG’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while TDG’s TA Score has 2 bullish TA indicator(s).
- HEI’s TA Score: 5 bullish, 3 bearish.
- TDG’s TA Score: 2 bullish, 7 bearish.
Price Growth
HEI (@Aerospace & Defense) experienced а -1.26% price change this week, while TDG (@Aerospace & Defense) price change was -5.44% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -2.43%. For the same industry, the average monthly price growth was -4.22%, and the average quarterly price growth was +48.05%.
Reported Earning Dates
HEI is expected to report earnings on May 27, 2026.
TDG is expected to report earnings on Aug 11, 2026.
Industries' Descriptions
@Aerospace & Defense (-2.43% 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.
| HEI | TDG | HEI / TDG | |
| Capitalization | 34.2B | 64.3B | 53% |
| EBITDA | 1.26B | 4.83B | 26% |
| Gain YTD | -10.706 | -13.602 | 79% |
| P/E Ratio | 57.20 | 35.86 | 159% |
| Revenue | 4.63B | 9.5B | 49% |
| Total Cash | 261M | 3.88B | 7% |
| Total Debt | 2.51B | 32B | 8% |
HEI | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 54 Fair valued | |
PROFIT vs RISK RATING 1..100 | 31 | 30 | |
SMR RATING 1..100 | 50 | 17 | |
PRICE GROWTH RATING 1..100 | 60 | 63 | |
P/E GROWTH RATING 1..100 | 66 | 75 | |
SEASONALITY SCORE 1..100 | 25 | 50 |
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 (54) in the Aerospace And Defense industry is in the same range as HEI (76). This means that TDG’s stock grew similarly to HEI’s over the last 12 months.
TDG's Profit vs Risk Rating (30) in the Aerospace And Defense industry is in the same range as HEI (31). This means that TDG’s stock grew similarly to HEI’s over the last 12 months.
TDG's SMR Rating (17) in the Aerospace And Defense industry is somewhat better than the same rating for HEI (50). This means that TDG’s stock grew somewhat faster than HEI’s over the last 12 months.
HEI's Price Growth Rating (60) in the Aerospace And Defense industry is in the same range as TDG (63). This means that HEI’s stock grew similarly to TDG’s over the last 12 months.
HEI's P/E Growth Rating (66) in the Aerospace And Defense industry is in the same range as TDG (75). This means that HEI’s stock grew similarly to TDG’s over the last 12 months.
| HEI | TDG | |
|---|---|---|
| RSI ODDS (%) | N/A | 4 days ago 53% |
| Stochastic ODDS (%) | 4 days ago 43% | 4 days ago 68% |
| Momentum ODDS (%) | 4 days ago 66% | 4 days ago 53% |
| MACD ODDS (%) | 4 days ago 65% | 4 days ago 48% |
| TrendWeek ODDS (%) | 4 days ago 55% | 4 days ago 53% |
| TrendMonth ODDS (%) | 4 days ago 50% | 4 days ago 57% |
| Advances ODDS (%) | 5 days ago 62% | 12 days ago 65% |
| Declines ODDS (%) | 7 days ago 56% | 4 days ago 52% |
| BollingerBands ODDS (%) | 4 days ago 42% | 5 days ago 65% |
| Aroon ODDS (%) | N/A | 6 days ago 32% |
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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 60% 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.
TDG and
Correlation & Price change
A.I.dvisor indicates that over the last year, TDG has been loosely correlated with HEI. These tickers have moved in lockstep 49% of the time. This A.I.-generated data suggests there is some statistical probability that if TDG jumps, then HEI could also see price increases.
| Ticker / NAME | Correlation To TDG | 1D Price Change % | ||
|---|---|---|---|---|
| TDG | 100% | -2.53% | ||
| HEI - TDG | 49% Loosely correlated | -2.80% | ||
| LOAR - TDG | 41% Loosely correlated | -7.52% | ||
| VVX - TDG | 40% Loosely correlated | -2.23% | ||
| SAFRY - TDG | 39% Loosely correlated | -4.31% | ||
| VSEC - TDG | 39% Loosely correlated | -5.24% | ||
More | ||||