Which Is a Better Investment, Huntington Ingalls Industries, Inc. or TransDigm Group Incorporated Stock?

By Tudor Pop
July 31, 2026
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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 TransDigm Group Incorporated, Huntington Ingalls Industries or Inc. 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 TransDigm Group Incorporated, Huntington Ingalls Industries and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.

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.

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships, surface combatants, and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; uncrewed autonomous systems; live, virtual, and constructive solutions; platform modernization; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

Latest Aerospace & Defense and TransDigm Group Incorporated, Huntington Ingalls Industries, Inc. Stock News

As of July 31, 2026, TransDigm Group Incorporated had a $70.2 billion market capitalization, compared to the Aerospace & Defense median of $3.5 million. TransDigm Group Incorporated’s stock is down 5.7% in 2026, up 1.4% in the previous five trading days and down 22.61% in the past year.

Currently, TransDigm Group Incorporated’s price-earnings ratio is 39.2. TransDigm Group Incorporated’s trailing 12-month revenue is $9.5 billion with a 21.9% net profit margin. Year-over-year quarterly sales growth most recently was 18.3%. Analysts expect adjusted earnings to reach $40.053 per share for the current fiscal year. TransDigm Group Incorporated currently has a 7.2% dividend yield.

As of July 31, 2026, Huntington Ingalls Industries, Inc. had a $12.9 billion market cap, putting it in the 81st percentile of all stocks. Huntington Ingalls Industries, Inc.’s stock is down 4% in 2026, up 13.5% in the previous five trading days and up 26.28% in the past year.

Currently, Huntington Ingalls Industries, Inc.’s price-earnings ratio is 19.4. Huntington Ingalls Industries, Inc.’s trailing 12-month revenue is $13.2 billion with a 5.0% net profit margin. Year-over-year quarterly sales growth most recently was 10.9%. Analysts expect adjusted earnings to reach $18.326 per share for the current fiscal year. Huntington Ingalls Industries, Inc. currently has a 1.7% dividend yield.

How We Compare TransDigm Group Incorporated, Huntington Ingalls Industries and Inc. 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 TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.’s stock grades to see how they measure up against one another.

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TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.’s Quality Grades

Company Ticker Quality
TransDigm Group Incorporated TDG B
Huntington Ingalls Industries, Inc. HII B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

TransDigm Group Incorporated has a Quality Score of 65, which is Strong. Huntington Ingalls Industries, Inc. has a Quality Score of 67, which is Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both TransDigm Group Incorporated, Huntington Ingalls Industries and Inc. have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.’s Momentum Grades

Company Ticker Momentum
TransDigm Group Incorporated TDG D
Huntington Ingalls Industries, Inc. HII C

Momentum grades help to 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. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

TransDigm Group Incorporated has a Momentum Score of 33, which is Weak. Huntington Ingalls Industries, Inc. has a Momentum Score of 49, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither TransDigm Group Incorporated, Huntington Ingalls Industries or Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if TransDigm Group Incorporated, Huntington Ingalls Industries or Inc. is the better investment when it comes to momentum.

TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
TransDigm Group Incorporated TDG C
Huntington Ingalls Industries, Inc. HII C

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.

TransDigm Group Incorporated has a Earnings Estimate Score of 44, which is Neutral. Huntington Ingalls Industries, Inc. has a Earnings Estimate Score of 74, which is Positive.

The Earnings Estimate Revisions Grade Winner: Huntington Ingalls Industries, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Huntington Ingalls Industries, Inc. has a better Earnings Estimate Revisions Grade than TransDigm Group Incorporated. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Huntington Ingalls Industries, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other TransDigm Group Incorporated, Huntington Ingalls Industries and Inc. Grades

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

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Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

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.

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 TransDigm Group Incorporated, Huntington Ingalls Industries and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, TransDigm Group Incorporated, Huntington Ingalls Industries or Inc. Stock?

Overall, TransDigm Group Incorporated stock has a Momentum Score of 33, Estimate Revisions Score of 44 and Quality Score of 65.

Huntington Ingalls Industries, Inc. stock has a Momentum Score of 49, Estimate Revisions Score of 74 and Quality Score of 67.

Comparing TransDigm Group Incorporated, Huntington Ingalls Industries and Inc.’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.

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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.



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