Critical Comparison: TransDigm Group (NYSE:TDG) & Avon Protection (OTCMKTS:AVNBF)

TransDigm Group (NYSE:TDG) and Avon Protection (OTCMKTS:AVNBF) are both aerospace companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Earnings and Valuation

This table compares TransDigm Group and Avon Protection’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransDigm Group	$7.61 billion	9.42	$1.30 billion	$25.21	50.78
Avon Protection	N/A	N/A	N/A	C$0.42	35.34

TransDigm Group has higher revenue and earnings than Avon Protection. Avon Protection is trading at a lower price-to-earnings ratio than TransDigm Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.8% of TransDigm Group shares are owned by institutional investors. Comparatively, 45.1% of Avon Protection shares are owned by institutional investors. 5.0% of TransDigm Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for TransDigm Group and Avon Protection, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransDigm Group	0	7	13	0	2.65
Avon Protection	0	0	0	0	N/A

TransDigm Group currently has a consensus target price of $1,422.94, indicating a potential upside of 11.16%. Given TransDigm Group’s higher possible upside, equities analysts clearly believe TransDigm Group is more favorable than Avon Protection.

Profitability

This table compares TransDigm Group and Avon Protection’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransDigm Group	21.83%	-66.70%	8.74%
Avon Protection	N/A	N/A	N/A

Summary

TransDigm Group beats Avon Protection on 9 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 Avon Protection

Avon Protection plc provides respiratory, chemical, biological, radiological, and nuclear and head protection solutions for military and first responder agencies in the United Kingdom, Europe, and the United States. The company offers respiratory products, including respirators, filters, powered and supplied air, escape hoods, underwater systems, and thermal image camera, and CBRN protective wear, as well as spares and accessories. It also provides head protection products, such as ballistic helmets, bump protection helmets, helmet liners, and retention system. It offers its products under the Avon Protection and Team Wendy brands. The company was formerly known as Avon Rubber p.l.c. and changed its name to Avon Protection plc in July 2021. Avon Protection plc was incorporated in 1890 and is headquartered in Melksham, the United Kingdom.