Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in HEICO Corporation or TransDigm Group Incorporated because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how HEICO Corporation and TransDigm Group Incorporated compare based on key financial metrics to determine which better meets your investment needs.

About HEICO Corporation and TransDigm Group Incorporated

HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment offers jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components and assemblies. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and commercial aircraft surfaces, as well as for avionics and navigation systems, subcomponents, and other military aircraft instruments. The company’s Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power electronics; power conversion and interface products; interconnection devices; and underwater locator and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; environment connectivity products and molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; radiation assurance, embedded computing, and silicone solutions; test sockets and adapters; and electronic components and rotary joint assemblies. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.

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, cargo loading and handling systems, delivery systems, and electronic components. Its Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, parachutes, specialized flight, wind tunnel and jet engine testing services and equipment, and testing and instrumentation solutions, as well as engineered audio, radio, and antenna systems. The Non-Aviation segment offers seat belts and safety restraints; mechanical/electromechanical actuators and controls; hydraulic/electromechanical actuators and fuel valves; refueling systems; and turbine controls. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots; airframe manufacturers, cabin system and subsystem suppliers, airlines, and third party maintenance suppliers; and off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers, as well as manufacturers of heavy equipment. The company was formerly known as TD Holding Corporation and changed its name to TransDigm Group Incorporated in 2006. The company was founded in 1993 and is headquartered in Cleveland, Ohio.

Latest Aerospace & Defense and HEICO Corporation, TransDigm Group Incorporated Stock News

As of March 3, 2026, HEICO Corporation had a $38.6 billion market capitalization, compared to the Aerospace & Defense median of $6.8 million. HEICO Corporation’s stock is up 1% in 2026, down 6.8% in the previous five trading days and up 23.44% in the past year.

Currently, HEICO Corporation’s price-earnings ratio is 64.7. HEICO Corporation’s trailing 12-month revenue is $4.6 billion with a 15.4% net profit margin. Year-over-year quarterly sales growth most recently was 14.4%. Analysts expect adjusted earnings to reach $5.603 per share for the current fiscal year. HEICO Corporation currently has a 0.1% dividend yield.

As of March 3, 2026, TransDigm Group Incorporated had a $74.9 billion market cap, putting it in the 96th percentile of all stocks. TransDigm Group Incorporated’s stock is down 0.3% in 2026, up 2.5% in the previous five trading days and down 2.99% in the past year.

Currently, TransDigm Group Incorporated’s price-earnings ratio is 42.7. TransDigm Group Incorporated’s trailing 12-month revenue is $9.1 billion with a 22.2% net profit margin. Year-over-year quarterly sales growth most recently was 13.9%. Analysts expect adjusted earnings to reach $38.984 per share for the current fiscal year. TransDigm Group Incorporated currently has a 6.8% dividend yield.

How We Compare HEICO Corporation and TransDigm Group Incorporated Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at HEICO Corporation and TransDigm Group Incorporated’s stock grades to see how they measure up against one another.

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HEICO Corporation and TransDigm Group Incorporated Stock Value Grades

Company	Ticker	Value
HEICO Corporation	HEI	F
TransDigm Group Incorporated	TDG	D

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

HEICO Corporation has a Value Score of 7, which is Ultra Expensive. TransDigm Group Incorporated has a Value Score of 22, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither HEICO Corporation or TransDigm Group Incorporated has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if HEICO Corporation or TransDigm Group Incorporated is the better investment when it comes to value.

HEICO Corporation and TransDigm Group Incorporated Growth Grades

Company	Ticker	Growth
HEICO Corporation	HEI	B
TransDigm Group Incorporated	TDG	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

HEICO Corporation has a Growth Score of 70, which is Strong. TransDigm Group Incorporated has a Growth Score of 84, which is Very Strong.

The Growth Grade Winner: TransDigm Group Incorporated

As you can clearly see from the Growth Grade breakdown above, TransDigm Group Incorporated has a more attractive growth grade than HEICO Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, TransDigm Group Incorporated could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

HEICO Corporation and TransDigm Group Incorporated’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
HEICO Corporation	HEI	B
TransDigm Group Incorporated	TDG	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

HEICO Corporation has a Earnings Estimate Score of 67, which is Positive. TransDigm Group Incorporated has a Earnings Estimate Score of 62, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both HEICO Corporation and TransDigm Group Incorporated have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether HEICO Corporation or TransDigm Group Incorporated is a better fit.

Other HEICO Corporation and TransDigm Group Incorporated Grades

In addition to Growth, Value and Estimate Revisions, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether HEICO Corporation and TransDigm Group Incorporated pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, HEICO Corporation or TransDigm Group Incorporated Stock?

Overall, HEICO Corporation stock has a Value Score of 7, Growth Score of 70 and Estimate Revisions Score of 67.

TransDigm Group Incorporated stock has a Value Score of 22, Growth Score of 84 and Estimate Revisions Score of 62.

Comparing HEICO Corporation and TransDigm Group Incorporated’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.