Can TransDigm Outrun Lockheed Martin in the Next Rally?
Lockheed Martin surged 26% 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 Lockheed Martin (LMT) stock, suggesting you may be better off investing in TDG
- TDG’s quarterly revenue growth was 13.9%, vs. LMT’s 9.1%.
- In addition, its Last 12 Months revenue growth came in at 11.7%, ahead of LMT’s 5.6%.
- 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 LMT’s fundamentals stack up against those of TDG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LMT | TDG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 18.6 | 17.6 | TDG |
| Revenue Growth | |||
| Last Quarter | 9.1% | 13.9% | TDG |
| Last 12 Months | 5.6% | 11.7% | TDG |
| Last 3 Year Average | 4.4% | 17.5% | TDG |
| Operating Margins | |||
| Last 12 Months | 10.3% | 46.7% | TDG |
| Last 3 Year Average | 10.9% | 45.9% | TDG |
| Momentum | |||
| Last 3 Year Return | 44.2% | 108.8% | 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: LMT Revenue Comparison | TDG Revenue Comparison
See more margin details: LMT Operating Income Comparison | TDG Operating Income Comparison
See detailed fundamentals on Buy or Sell TDG Stock and Buy or Sell LMT 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 | |||||||||
| LMT Return | 3% | 40% | -4% | 10% | 2% | 26% | 97% | ||
| TDG Return | 3% | 2% | 67% | 32% | 12% | -5% | 146% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% | ||
| Monthly Win Rates [3] | |||||||||
| LMT Win Rate | 50% | 67% | 42% | 58% | 42% | 50% | 51% | ||
| 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] | |||||||||
| LMT Max Drawdown | -9% | -0% | -17% | -8% | -14% | 0% | -8% | ||
| 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 2/6/2026 (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 LMT Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about LMT 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
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.