Transdigm Group (NYSE:TDG – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Valuation & Earnings
This table compares Transdigm Group and Outdoor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Transdigm Group | $7.94 billion | 9.99 | $1.71 billion | $30.13 | 46.70 |
| Outdoor | $49.40 million | 3.51 | -$130.83 million | ($0.46) | -3.22 |
Risk & Volatility
Transdigm Group has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Transdigm Group and Outdoor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Transdigm Group | 0 | 4 | 9 | 0 | 2.69 |
| Outdoor | 0 | 1 | 1 | 0 | 2.50 |
Transdigm Group currently has a consensus target price of $1,624.6923, suggesting a potential upside of 15.48%. Outdoor has a consensus target price of $1.75, suggesting a potential upside of 18.24%. Given Outdoor’s higher possible upside, analysts clearly believe Outdoor is more favorable than Transdigm Group.
Institutional and Insider Ownership
95.8% of Transdigm Group shares are held by institutional investors. Comparatively, 26.4% of Outdoor shares are held by institutional investors. 4.1% of Transdigm Group shares are held by company insiders. Comparatively, 25.0% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Transdigm Group and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Transdigm Group | 20.98% | -35.27% | 8.92% |
| Outdoor | -38.60% | -18.60% | -15.41% |
Summary
Transdigm Group beats Outdoor on 10 of the 14 factors compared between the two stocks.
About Transdigm Group
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.
About Outdoor
AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.
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