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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 operate in the aerospace and defense sector with a focus on aftermarket parts and components.
- HEI has delivered stronger year-to-date returns of approximately 10% compared to TDG's decline of about 6% amid recent market activity.
- TDG maintains a larger market capitalization and higher revenue scale but carries significantly higher debt levels relative to HEI.
- Recent developments include HEI's record quarterly results driven by aerospace growth and TDG's announced acquisition of Prince & Izant for roughly $1.07 billion.
- Valuation metrics show HEI trading at a higher price-to-earnings ratio than TDG, reflecting differing growth profiles and market positioning.
- Sector exposure to commercial and defense aerospace provides both stocks with similar tailwinds from passenger traffic recovery and platform demand.
Introduction
This comparison examines HEI and TDG, two established players in the aerospace and defense industry. Both companies supply critical components and benefit from aftermarket demand, yet they differ in scale, capital structure, and recent market behavior. Institutional investors, growth-oriented traders, and those seeking sector exposure may find the relative performance and positioning of these stocks relevant when evaluating opportunities in aerospace suppliers. The analysis draws on observable metrics such as returns, fundamentals, and recent corporate actions to highlight contrasts without forward-looking speculation.
HEICO Corporation (HEI) Overview and Recent Performance
HEI, or HEICO Corporation, specializes in designing and manufacturing aerospace and defense components, with a strong emphasis on aftermarket parts for commercial and military applications. In recent weeks, the stock has shown resilience amid broader sector activity, posting year-to-date gains near 10% while trading around the $354–$356 range. Performance has been supported by consistent demand in aerospace markets and positive sentiment following reports of record net sales and operating income in the most recent fiscal quarter. Market observers have noted steady momentum tied to the company's niche positioning and operational execution, contributing to relative stability compared with some peers during the period.
TransDigm Group Incorporated (TDG) Overview and Recent Performance
TDG, or TransDigm Group Incorporated, focuses on highly engineered aerospace components, particularly proprietary parts with significant aftermarket content. Over recent market activity, the stock has traded near $1,254 and recorded year-to-date returns in negative territory around 6%. Sentiment has been influenced by the company's scale in the sector alongside its acquisition strategy, including a recent agreement to purchase Prince & Izant. Broader performance reflects ongoing leverage considerations and integration of new assets, with the stock maintaining its position in a competitive aerospace environment despite short-term pressure.
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Head-to-Head Comparison
HEI and TDG share exposure to aerospace and defense aftermarket demand, yet their business models differ in scale and execution. TDG operates with substantially higher revenue and EBITDA figures alongside a larger market capitalization, supported by an acquisition-driven growth approach. In contrast, HEI maintains a more conservative capital structure with lower relative debt levels. Recent momentum has favored HEI on a year-to-date basis, while TDG has faced headwinds linked to leverage and market reactions to its expansion. Risk factors include TDG's higher debt load versus HEI's elevated valuation multiples. Sector sentiment remains broadly constructive for both due to platform demand, though trade-offs in growth pace and balance sheet flexibility distinguish their profiles.
Tickeron AI Verdict
Based on observable factors such as trend consistency in recent periods, relative stability, and positioning within the aerospace sector, Tickeron’s AI would currently assign a probabilistic preference toward HEI over TDG. This reflects stronger year-to-date performance metrics and lower leverage indicators, which may support more consistent behavior under prevailing conditions. The assessment remains subject to ongoing market developments and does not constitute investment advice.
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 Buy 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 5 bullish TA indicator(s).
- HEI’s TA Score: 5 bullish, 4 bearish.
- TDG’s TA Score: 5 bullish, 5 bearish.
Price Growth
HEI (@Aerospace & Defense) experienced а +3.15% price change this week, while TDG (@Aerospace & Defense) price change was -2.32% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +5.58%. For the same industry, the average monthly price growth was +3.07%, and the average quarterly price growth was +4.31%.
Reported Earning Dates
HEI is expected to report earnings on Aug 31, 2026.
TDG is expected to report earnings on Aug 11, 2026.
Industries' Descriptions
@Aerospace & Defense (+5.58% 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 | 42.5B | 67.7B | 63% |
| EBITDA | 1.37B | 4.83B | 28% |
| Gain YTD | 13.677 | -7.866 | -174% |
| P/E Ratio | 64.99 | 37.16 | 175% |
| Revenue | 4.91B | 9.5B | 52% |
| Total Cash | 210M | 3.88B | 5% |
| Total Debt | 2.59B | 32B | 8% |
HEI | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 6 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 39 Fair valued | |
PROFIT vs RISK RATING 1..100 | 17 | 27 | |
SMR RATING 1..100 | 49 | 17 | |
PRICE GROWTH RATING 1..100 | 44 | 60 | |
P/E GROWTH RATING 1..100 | 63 | 76 | |
SEASONALITY SCORE 1..100 | 34 | 65 |
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 (39) in the Aerospace And Defense industry is somewhat better than the same rating for HEI (74). This means that TDG’s stock grew somewhat faster than HEI’s over the last 12 months.
HEI's Profit vs Risk Rating (17) in the Aerospace And Defense industry is in the same range as TDG (27). 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 (49). This means that TDG’s stock grew similarly to HEI’s over the last 12 months.
HEI's Price Growth Rating (44) in the Aerospace And Defense industry is in the same range as TDG (60). This means that HEI’s stock grew similarly to TDG’s over the last 12 months.
HEI's P/E Growth Rating (63) in the Aerospace And Defense industry is in the same range as TDG (76). This means that HEI’s stock grew similarly to TDG’s over the last 12 months.
| HEI | TDG | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 56% | 4 days ago 85% |
| Stochastic ODDS (%) | 4 days ago 51% | 4 days ago 75% |
| Momentum ODDS (%) | 4 days ago 72% | 4 days ago 50% |
| MACD ODDS (%) | 4 days ago 63% | 4 days ago 65% |
| TrendWeek ODDS (%) | 4 days ago 66% | 4 days ago 50% |
| TrendMonth ODDS (%) | 4 days ago 60% | 4 days ago 55% |
| Advances ODDS (%) | 7 days ago 64% | 8 days ago 66% |
| Declines ODDS (%) | 5 days ago 54% | 6 days ago 50% |
| BollingerBands ODDS (%) | 4 days ago 40% | 4 days ago 67% |
| Aroon ODDS (%) | 4 days ago 57% | 4 days ago 63% |
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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 50% 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% | -2.92% | ||
| HEI - TDG | 50% Loosely correlated | +1.18% | ||
| LOAR - TDG | 45% Loosely correlated | -2.30% | ||
| VSEC - TDG | 45% Loosely correlated | -3.22% | ||
| GE - TDG | 44% Loosely correlated | -1.19% | ||
| SARO - TDG | 41% Loosely correlated | -2.70% | ||
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