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LHX vs TDG
Which Stock Would AI Choose? L3Harris Technologies (LHX) vs. TransDigm Group (TDG) Stock Comparison
Key Takeaways
- LHX has delivered a robust 74% one-year return and 23% YTD gain, fueled by defense sector momentum and analyst upgrades, trading at a potential 17-23% discount to intrinsic value.
- TDG shows strong Q1 revenue growth of 14% but faces share price pullbacks amid acquisition integration risks and margin pressures, underperforming industrials recently.
- Both operate in aerospace and defense, but LHX emphasizes mission-critical government solutions while TDG focuses on commercial aircraft components with higher operating margins around 47%.
- Recent LHX catalysts include leadership changes and contract wins; TDG raised FY26 guidance despite softer outlook concerns.
- Analysts view LHX as undervalued with strong backlog growth; TDG holds Moderate Buy but trails sector peers short-term.
Introduction
This stock comparison examines LHX and TDG, two prominent players in the aerospace and defense sector amid rising geopolitical tensions and sustained defense spending. Both companies benefit from long-term contracts and technological expertise, but differ in focus—LHX on government mission systems and TDG on aircraft components. Investors seeking exposure to defense growth or commercial aviation recovery, as well as traders eyeing relative performance and market positioning, will find value in analyzing their recent momentum, valuations, and risk profiles in today's volatile environment.
LHX Overview and Recent Performance
L3Harris Technologies (LHX) provides mission-critical solutions across space, airborne, communication, and missile systems for government and commercial clients. Operating through segments like Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions, the company serves U.S. Department of Defense and international customers with technologies including tactical radios, satellite systems, and hypersonic propulsion.
In recent market activity, LHX stock has shown strong upward momentum, with a 74% one-year total return, 23% YTD gain, and 27% over three months, outperforming broader indices. Price behavior reflects positive sentiment from defense spending focus, strategic leadership appointments like a new CFO and Missile Solutions president, analyst upgrades, and contracts such as a $466M Army award. Valuation analyses indicate 17-23% undervaluation versus intrinsic estimates around $445, supported by backlog growth and sector tailwinds.
TDG Overview and Recent Performance
TransDigm Group (TDG) designs and supplies highly engineered aircraft components, including power controls, airframe parts, and specialized systems for commercial and military platforms. Its Power & Control and Airframe segments cater to global OEMs and aftermarket needs with products like actuators, ignition systems, and cockpit displays.
Recent weeks have seen TDG stock experience volatility, with a 3-4% one-year gain but YTD decline and 4% three-month drop, underperforming industrials amid acquisition scrutiny. Q1 fiscal 2026 results showed 14% sales growth to $2.29B and EPS beat, prompting raised FY26 guidance to $9.94B revenue midpoint. However, sentiment is tempered by $3.16B acquisitions raising integration and margin risks (EBITDA outlook slightly below some expectations), higher interest expenses, and 19% below 52-week highs. Analysts maintain Moderate Buy with 20% upside potential.
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Head-to-Head Comparison
LHX and TDG share aerospace/defense exposure but diverge in models: LHX relies on stable government contracts (e.g., missile warning, tactical comms) with lower revenue growth (3% L12M) but undervaluation and backlog strength; TDG drives higher growth (11% L12M) via commercial aftermarket/OEM but faces cyclical risks from aviation demand and acquisition debt.
Growth drivers contrast: LHX benefits from geopolitical catalysts and defense budgets; TDG from OEM ramps but vulnerable to supply chains. Recent momentum favors LHX (81% 1Y vs. TDG's 3-4%); risks include LHX's budget dependencies vs. TDG's leverage/margins (47% vs. LHX 11%). Sentiment leans positive for LHX on stability, TDG on profitability trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently favors LHX due to superior recent trend consistency, relative undervaluation (17-23% discount), expanding backlog, and resilient defense positioning amid sector tailwinds. While TDG offers higher margins and growth potential, its short-term momentum lag and integration risks suggest lower near-term probability of outperformance versus LHX.
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 LHX 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).
LHX’s FA Score shows that 3 FA rating(s) are green whileTDG’s FA Score has 2 green FA rating(s).
- LHX’s FA Score: 3 green, 2 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.
LHX’s TA Score shows that 3 TA indicator(s) are bullish while TDG’s TA Score has 4 bullish TA indicator(s).
- LHX’s TA Score: 3 bullish, 6 bearish.
- TDG’s TA Score: 4 bullish, 5 bearish.
Price Growth
LHX (@Aerospace & Defense) experienced а -0.92% price change this week, while TDG (@Aerospace & Defense) price change was +4.86% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +2.22%. For the same industry, the average monthly price growth was +11.36%, and the average quarterly price growth was +30.07%.
Reported Earning Dates
LHX is expected to report earnings on Apr 30, 2026.
TDG is expected to report earnings on May 12, 2026.
Industries' Descriptions
@Aerospace & Defense (+2.22% 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.
| LHX | TDG | LHX / TDG | |
| Capitalization | 65.1B | 72B | 90% |
| EBITDA | 3.75B | 4.63B | 81% |
| Gain YTD | 19.757 | -4.153 | -476% |
| P/E Ratio | 40.86 | 41.01 | 100% |
| Revenue | 21.9B | 9.11B | 240% |
| Total Cash | 1.07B | 2.53B | 42% |
| Total Debt | 11.1B | 30B | 37% |
LHX | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 31 Undervalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 28 | 25 | |
SMR RATING 1..100 | 75 | 16 | |
PRICE GROWTH RATING 1..100 | 47 | 58 | |
P/E GROWTH RATING 1..100 | 25 | 77 | |
SEASONALITY SCORE 1..100 | 50 | 37 |
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.
LHX's Valuation (31) in the null industry is somewhat better than the same rating for TDG (72) in the Aerospace And Defense industry. This means that LHX’s stock grew somewhat faster than TDG’s over the last 12 months.
TDG's Profit vs Risk Rating (25) in the Aerospace And Defense industry is in the same range as LHX (28) in the null industry. This means that TDG’s stock grew similarly to LHX’s over the last 12 months.
TDG's SMR Rating (16) in the Aerospace And Defense industry is somewhat better than the same rating for LHX (75) in the null industry. This means that TDG’s stock grew somewhat faster than LHX’s over the last 12 months.
LHX's Price Growth Rating (47) in the null industry is in the same range as TDG (58) in the Aerospace And Defense industry. This means that LHX’s stock grew similarly to TDG’s over the last 12 months.
LHX's P/E Growth Rating (25) in the null industry is somewhat better than the same rating for TDG (77) in the Aerospace And Defense industry. This means that LHX’s stock grew somewhat faster than TDG’s over the last 12 months.
| LHX | TDG | |
|---|---|---|
| RSI ODDS (%) | N/A | 4 days ago 52% |
| Stochastic ODDS (%) | 4 days ago 49% | 4 days ago 51% |
| Momentum ODDS (%) | 4 days ago 59% | 4 days ago 68% |
| MACD ODDS (%) | 4 days ago 51% | 4 days ago 67% |
| TrendWeek ODDS (%) | 4 days ago 52% | 4 days ago 63% |
| TrendMonth ODDS (%) | 4 days ago 57% | 4 days ago 63% |
| Advances ODDS (%) | 15 days ago 54% | 7 days ago 65% |
| Declines ODDS (%) | 4 days ago 51% | 5 days ago 51% |
| BollingerBands ODDS (%) | 4 days ago 68% | 4 days ago 49% |
| Aroon ODDS (%) | 4 days ago 52% | 4 days ago 61% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| CGGG | 28.78 | 0.09 | +0.30% |
| Capital Group U.S. Large Growth ETF | |||
| SPHY | 23.60 | -0.02 | -0.08% |
| State Street® SPDR® Port Hi Yld Bd ETF | |||
| YMAR | 28.32 | -0.06 | -0.21% |
| FT Vest Intl Eq Mod Bffr ETF Mar | |||
| IPOS | 20.80 | -0.32 | -1.51% |
| Renaissance International IPO ETF | |||
| JNUG | 237.11 | -5.21 | -2.15% |
| Direxion Daily Jr Gld Mnrs Bull 2X ETF | |||
LHX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LHX has been loosely correlated with GD. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if LHX jumps, then GD could also see price increases.
| Ticker / NAME | Correlation To LHX | 1D Price Change % | ||
|---|---|---|---|---|
| LHX | 100% | -0.87% | ||
| GD - LHX | 61% Loosely correlated | +0.41% | ||
| HII - LHX | 59% Loosely correlated | -0.34% | ||
| NOC - LHX | 52% Loosely correlated | -1.12% | ||
| KTOS - LHX | 50% Loosely correlated | -4.60% | ||
| BWXT - LHX | 49% Loosely correlated | +2.16% | ||
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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 44% 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% | +0.69% | ||
| HEI - TDG | 44% Loosely correlated | +0.21% | ||
| VVX - TDG | 40% Loosely correlated | -0.87% | ||
| SAFRY - TDG | 39% Loosely correlated | -3.30% | ||
| RYCEY - TDG | 36% Loosely correlated | -3.72% | ||
| SARO - TDG | 35% Loosely correlated | +0.19% | ||
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