Head-To-Head Analysis: Loar (NYSE:LOAR) and TransDigm Group (NYSE:TDG)

TransDigm Group (NYSE:TDG) and Loar (NYSE:LOAR) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Valuation & Earnings

This table compares TransDigm Group and Loar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransDigm Group	$6.59 billion	12.22	$1.30 billion	$25.21	56.90
Loar	$358.10 million	17.99	N/A	N/A	N/A

TransDigm Group has higher revenue and earnings than Loar.

Analyst Ratings

This is a breakdown of current ratings and price targets for TransDigm Group and Loar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransDigm Group	0	7	13	0	2.65
Loar	0	1	3	0	2.75

TransDigm Group presently has a consensus target price of $1,438.24, suggesting a potential upside of 0.27%. Loar has a consensus target price of $75.75, suggesting a potential upside of 5.46%. Given Loar’s stronger consensus rating and higher possible upside, analysts plainly believe Loar is more favorable than TransDigm Group.

Insider and Institutional Ownership

95.8% of TransDigm Group shares are held by institutional investors. 5.0% of TransDigm Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares TransDigm Group and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransDigm Group	21.83%	-66.70%	8.74%
Loar	N/A	N/A	N/A

Summary

TransDigm Group beats Loar on 6 of the 10 factors compared between the two stocks.

About TransDigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.