Howmet Aerospace vs TransDigm Group
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KIRA’s take AI analyst
I put Howmet Aerospace and TransDigm Group side by side, using each one’s latest annual report. Here is what stands out:
- TransDigm Group is the larger business, with $8.8B of revenue in fiscal 2025 against $8.3B for Howmet Aerospace.
- TransDigm Group kept more of each dollar of sales as operating profit (47.2% operating margin, against 24.8%).
- TransDigm Group turned more of its sales into free cash flow (20.6% FCF margin, against 17.3%).
- Investors pay more for each dollar of Howmet Aerospace’s earnings: a P/E of 41.9x against 34.3x for TransDigm Group.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Howmet Aerospace
HWM
3/9
Piotroski F-scoreNet debt / EBITDAShare count change
TransDigm Group
TDG
6/9
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capital
Side by side
Best in the row
| Latest fiscal year | HWM FY25 | TDG FY25 |
|---|---|---|
| Size | ||
| Market cap | $78.1B | $64.8B |
| Revenue | $8.3B | $8.8B |
| Free cash flow | $1.4B | $1.8B |
| Net income | $1.5B | $2.1B |
| Growth | ||
| Revenue growth | 11.1% | 11.2% |
| 5-year growth | 9.4% | 11.6% |
| Share count change | −1.0% | 0.7% |
| Profitability | ||
| Gross margin | — | 60.1% |
| Operating margin | 24.8% | 47.2% |
| Net margin | 18.3% | 23.5% |
| FCF margin | 17.3% | 20.6% |
| Return on capital | 22.4% | 22.5% |
| Return on equity | 30.4% | — |
| Balance sheet | ||
| Net debt | $2.3B | $26.8B |
| Net debt / EBITDA | 1.0x | 5.9x |
| Dividends and buybacks | $881M | $659M |
| Valuation & quality | ||
| P/E | 41.9x | 34.3x |
| Piotroski F-score | 7 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.

