Emerson Electric Co. (EMR) vs TransDigm Group Incorporated (TDG)
TDG leads on 10 of 16 compared metrics, though EMR is the cheaper stock.
A side-by-side comparison of Emerson Electric Co. and TransDigm Group Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 20, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
EMR
Emerson Electric Co.
$150.66Industrials
TDG
TransDigm Group Incorporated
$1328.31Industrials
Total return — EMR vs TDG
growth of $100 · last 20yEMR +252.8%TDG +5411.7%TDG compounded faster
Log scale — wide-divergence pair
EMR TDG
EMR vs TDG: by the numbers
- •EMR is the larger company ($84.38B vs $74.30B market cap).
- •EMR trades at the lower earnings multiple (34.79 vs 41.46 P/E).
- •TDG converts more revenue to profit (21.29% vs 13.35% net margin).
- •TDG grew revenue faster over the past five years (14.19% vs 1.43% CAGR).
- •TDG pays the higher dividend yield (6.78% vs 1.46%).
Which is better, EMR or TDG?
Metric tally: EMR 6 · TDG 10It depends on what you're optimizing for:
ValueEMR(lower P/E)
GrowthTDG(faster 5Y revenue CAGR)
IncomeTDG(higher dividend yield)
QualityTDG(higher ROIC)
Metrics side by side
Valuation
| Metric | EMR | TDG |
|---|---|---|
| P/E ratio | 34.79● | 41.46 |
| Forward P/E | 20.97● | 28.28 |
| P/S ratio | 4.63● | 8.14 |
| P/B ratio | 4.18 | — |
| PEG ratio | 1.78 | 1.47● |
| EV / EBITDA | 18.89● | 22.04 |
| FCF yield | 3.67%● | 2.39% |
Profitability
| Metric | EMR | TDG |
|---|---|---|
| Gross margin | 52.66% | 59.02%● |
| Operating margin | 19.96% | 46.51%● |
| Net margin | 13.35% | 21.29%● |
| ROE | 12.04%● | -21.41% |
| ROIC | 7.26% | 15.22%● |
Dividends
| Metric | EMR | TDG |
|---|---|---|
| Dividend yield | 1.46% | 6.78%● |
| Payout ratio | 53.87% | 280.55% |
Growth (annualized)
| Metric | EMR | TDG |
|---|---|---|
| Revenue CAGR (5Y) | 1.43% | 14.19%● |
| EPS CAGR (5Y) | 4.54% | 31.14%● |
| FCF CAGR (5Y) | -0.23% | 13.70%● |
| Total return CAGR (5Y) | 12.55% | 19.52%● |
Frequently asked
- Which is better, EMR or TDG?
- It depends on your goal. value: EMR (lower P/E); growth: TDG (faster 5Y revenue CAGR); income: TDG (higher dividend yield); quality: TDG (higher ROIC). Across all compared metrics, TDG leads 10 to 6.
- Is EMR or TDG cheaper?
- On trailing earnings, EMR is cheaper: EMR trades at a 34.79 P/E and TDG at 41.46.
- Which has grown faster, EMR or TDG?
- Over the past five years, TDG grew revenue faster — EMR at a 1.43% CAGR versus TDG at 14.19%.
- Does EMR or TDG pay a bigger dividend?
- EMR yields 1.46% and TDG yields 6.78% based on trailing dividends and the latest price.
- Is EMR or TDG more profitable?
- TDG runs the higher net margin — EMR at 13.35% versus TDG at 21.29%.
- Which has been the better investment, EMR or TDG?
- Over the past 10-year, TDG delivered the higher annualized total return — EMR at 13.93% versus TDG at 23.35%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Emerson Electric P/E ratioTransDigm P/E ratioEmerson Electric dividend yieldTransDigm dividend yieldEmerson Electric ROETransDigm ROEEmerson Electric operating marginTransDigm operating marginEmerson Electric revenue growthTransDigm revenue growthEmerson Electric free cash flowTransDigm free cash flow
Emerson Electric & TransDigm appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 20, 2026.