Between TransDigm and Howmet Aerospace, Which Stock Looks Set to Break Out?
Howmet Aerospace fell -15% 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 Howmet Aerospace (HWM) stock, suggesting you may be better off investing in TDG
- TDG’s Last 12 Months revenue growth was 11.7%, vs. HWM’s 11.1%.
- In addition, its Last 3-Year Average revenue growth came in at 17.5%, ahead of HWM’s 13.4%.
- TDG leads on profitability over both periods – LTM margin of 46.7% and 3-year average of 45.9%.
These differences become even clearer when you look at the financials side by side. The table highlights how HWM’s fundamentals stack up against those of TDG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| HWM | TDG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 42.7 | 15.5 | TDG |
| Revenue Growth | |||
| Last Quarter | 14.6% | 13.9% | HWM |
| Last 12 Months | 11.1% | 11.7% | TDG |
| Last 3 Year Average | 13.4% | 17.5% | TDG |
| Operating Margins | |||
| Last 12 Months | 25.5% | 46.7% | TDG |
| Last 3 Year Average | 21.9% | 45.9% | TDG |
| Momentum | |||
| Last 3 Year Return | 436.5% | 80.4% | 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.
See more revenue details: HWM Revenue Comparison | TDG Revenue Comparison
See more margin details: HWM Operating Income Comparison | TDG Operating Income Comparison
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See detailed fundamentals on Buy or Sell TDG Stock and Buy or Sell HWM 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 | |||||||||
| HWM Return | 12% | 24% | 38% | 103% | 88% | 11% | 710% | <=== | |
| TDG Return | 3% | 2% | 67% | 32% | 12% | -14% | 122% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -7% | 70% | ||
| Monthly Win Rates [3] | |||||||||
| HWM Win Rate | 33% | 58% | 67% | 67% | 67% | 67% | 60% | <=== | |
| TDG Win Rate | 50% | 50% | 75% | 75% | 67% | 33% | 58% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | ||
| Max Drawdowns [4] | |||||||||
| HWM Max Drawdown | -17% | -4% | -2% | -3% | 0% | 0% | -4% | <=== | |
| TDG Max Drawdown | -16% | -19% | -1% | -4% | -3% | -14% | -10% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/30/2026 (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 and HWM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about HWM or TDG? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains and reduces single stock risk.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.