TransDigm vs Howmet Aerospace: Which Is the Stronger Buy Today?
Howmet Aerospace surged 25% 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 | 50.3 | 17.8 | 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 | 526.0% | 103.9% | 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
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% | 27% | 825% | <=== | |
| TDG Return | 3% | 2% | 67% | 32% | 12% | -1% | 156% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 84% | ||
| Monthly Win Rates [3] | |||||||||
| HWM Win Rate | 33% | 58% | 67% | 67% | 67% | 100% | 65% | <=== | |
| TDG Win Rate | 50% | 50% | 75% | 75% | 67% | 50% | 61% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | ||
| Max Drawdowns [4] | |||||||||
| HWM Max Drawdown | -17% | -4% | -2% | -3% | 0% | 0% | -4% | <=== | |
| TDG Max Drawdown | -16% | -19% | -1% | -4% | -3% | -5% | -8% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/27/2026 (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.
Portfolios Beat Stock Picking
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
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.