TransDigm vs Northrop Grumman: Which Is the Stronger Buy Today?
Northrop Grumman fell -17% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer TransDigm gives you more. TransDigm (TDG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Northrop Grumman (NOC) stock, suggesting you may be better off investing in TDG
- TDG’s quarterly revenue growth was 18.3%, vs. NOC’s 4.4%.
- In addition, its Last 12 Months revenue growth came in at 13.3%, ahead of NOC’s 5.0%.
- TDG leads on profitability over both periods – LTM margin of 46.8% and 3-year average of 46.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how NOC’s fundamentals stack up against those of TDG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| NOC | TDG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 16.6 | 15.5 | TDG |
| Revenue Growth | |||
| Last Quarter | 4.4% | 18.3% | TDG |
| Last 12 Months | 5.0% | 13.3% | TDG |
| Last 3 Year Average | 4.6% | 17.3% | TDG |
| Operating Margins | |||
| Last 12 Months | 11.1% | 46.8% | TDG |
| Last 3 Year Average | 9.1% | 46.1% | TDG |
| Momentum | |||
| Last 3 Year Return | 30.3% | 67.4% | TDG |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
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See detailed fundamentals on Buy or Sell TDG Stock and Buy or Sell NOC Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| NOC Return | 29% | 43% | -13% | 2% | 24% | -5% | 93% | ||
| TDG Return | 3% | 2% | 67% | 32% | 12% | -14% | 123% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% | ||
| Monthly Win Rates [3] | |||||||||
| NOC Win Rate | 50% | 67% | 42% | 50% | 58% | 40% | 51% | ||
| TDG Win Rate | 50% | 50% | 75% | 75% | 67% | 40% | 59% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| NOC Max Drawdown | -15% | -12% | -22% | -14% | -16% | -30% | -18% | ||
| TDG Max Drawdown | -19% | -25% | -11% | -12% | -18% | -22% | -18% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/18/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read TDG Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about NOC or TDG? Consider portfolio approach.
The Best Investors Think In Portfolios
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.