As ATI Surges 7.0% in a Day, TDG’s Story Stands Out
TransDigm (TDG) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs ATI (ATI), suggesting you may be better off investing in TDG
- TDG’s Last 12 Months revenue growth was 12.8%, vs. ATI’s 6.8%.
- In addition, its Last 3-Year Average revenue growth came in at 18.2%, ahead of ATI’s 15.9%.
- TDG leads on profitability over both periods – LTM margin of 46.4% and 3-year average of 45.1%.
ATI manufacturer of specialty materials and components, founded in 1960 and headquartered in Dallas, Texas, serving global markets. TDG designs and supplies aircraft components including actuators, ignition systems, locking devices, connectors, sealing solutions, and safety restraints for aviation and ground transportation.
Valuation & Performance Overview
| ATI | TDG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 19.8 | 18.9 | TDG |
| Revenue Growth | |||
| Last Quarter | 9.7% | 9.3% | ATI |
| Last 12 Months | 6.8% | 12.8% | TDG |
| Last 3 Year Average | 15.9% | 18.2% | TDG |
| Operating Margins | |||
| Last 12 Months | 13.2% | 46.4% | TDG |
| Last 3 Year Average | 11.8% | 45.1% | TDG |
| Momentum | |||
| Last 3 Year Return | 195.8% | 185.2% | ATI |
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.
See more revenue details: ATI Revenue Comparison | TDG Revenue Comparison
See more margin details: ATI Operating Income Comparison | TDG Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell TDG Stock to see if TransDigm’s edge holds up under the hood or if ATI still has cards to play (see Buy or Sell ATI Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ATI Return | -19% | -5% | 87% | 52% | 21% | 41% | 291% | <=== | |
| TDG Return | 11% | 3% | 2% | 67% | 32% | 9% | 176% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 12% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| ATI Win Rate | 50% | 50% | 75% | 50% | 58% | 75% | 60% | ||
| TDG Win Rate | 67% | 50% | 50% | 75% | 75% | 88% | 67% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | ||
| Max Drawdowns [4] | |||||||||
| ATI Max Drawdown | -75% | -16% | 0% | -1% | -15% | -24% | -22% | ||
| TDG Max Drawdown | -56% | -16% | -19% | -1% | -4% | -3% | -16% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/26/2025 (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 and ATI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.