Reviewing Transdigm Group (NYSE:TDG) and Applied Visual Sciences (OTCMKTS:APVS)

Transdigm Group (NYSE:TDG) and Applied Visual Sciences (OTCMKTS:APVS) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Transdigm Group and Applied Visual Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transdigm Group	0	5	10	0	2.67
Applied Visual Sciences	0	0	0	0	0.00

Transdigm Group presently has a consensus price target of $1,599.73, indicating a potential upside of 23.30%. Given Transdigm Group’s stronger consensus rating and higher probable upside, analysts plainly believe Transdigm Group is more favorable than Applied Visual Sciences.

Risk and Volatility

Transdigm Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Applied Visual Sciences has a beta of 6.68, meaning that its stock price is 568% more volatile than the S&P 500.

Profitability

This table compares Transdigm Group and Applied Visual Sciences’ 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%
Applied Visual Sciences	N/A	N/A	N/A

Valuation and Earnings

This table compares Transdigm Group and Applied Visual Sciences”s 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	9.21	$1.71 billion	$30.13	43.06
Applied Visual Sciences	N/A	N/A	N/A	N/A	N/A

Transdigm Group has higher revenue and earnings than Applied Visual Sciences.

Institutional & Insider Ownership

95.8% of Transdigm Group shares are held by institutional investors. 4.1% of Transdigm Group shares are held by company insiders. Comparatively, 33.0% of Applied Visual Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Transdigm Group beats Applied Visual Sciences on 7 of the 10 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 Applied Visual Sciences

Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.