Honeywell International Inc. (HON) vs TransDigm Group Incorporated (TDG)

TDG leads on 10 of 16 compared metrics, though HON is the cheaper stock.

A side-by-side comparison of Honeywell International Inc. and TransDigm Group Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 30, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — HON vs TDG

growth of $100 · last 20y
HON +179.2%TDG +5391.5%TDG compounded faster
Log scale — wide-divergence pair
101001k10kStart $10020102014201820222026$279$5,491
HON TDG

HON vs TDG: by the numbers

  • TDG is the larger company ($74.02B vs $72.17B market cap).
  • HON trades at the lower earnings multiple (16.13 vs 41.31 P/E).
  • TDG converts more revenue to profit (21.29% vs 11.16% net margin).
  • TDG grew revenue faster over the past five years (14.19% vs 2.42% CAGR).
  • TDG pays the higher dividend yield (6.80% vs 2.19%).

Which is better, HON or TDG?

Metric tally: HON 6 · TDG 10

It depends on what you're optimizing for:

ValueHON(lower P/E)
GrowthTDG(faster 5Y revenue CAGR)
IncomeTDG(higher dividend yield)
QualityTDG(higher ROIC)

Metrics side by side

Valuation

MetricHONTDG
P/E ratio16.1341.31
Forward P/E19.8828.17
P/S ratio1.988.11
P/B ratio3.41
PEG ratio9.271.63
EV / EBITDA14.2522.05
FCF yield5.66%2.40%

Profitability

MetricHONTDG
Gross margin36.95%59.02%
Operating margin14.87%46.51%
Net margin11.16%21.29%
ROE19.24%-21.41%
ROIC9.22%15.22%

Dividends

MetricHONTDG
Dividend yield2.19%6.80%
Payout ratio33.71%280.55%

Growth (annualized)

MetricHONTDG
Revenue CAGR (5Y)2.42%14.19%
EPS CAGR (5Y)1.74%31.14%
FCF CAGR (5Y)-4.80%13.70%
Total return CAGR (5Y)-10.26%19.83%

Frequently asked

Which is better, HON or TDG?
It depends on your goal. value: HON (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 HON or TDG cheaper?
On trailing earnings, HON is cheaper: HON trades at a 16.13 P/E and TDG at 41.31.
Which has grown faster, HON or TDG?
Over the past five years, TDG grew revenue faster — HON at a 2.42% CAGR versus TDG at 14.19%.
Does HON or TDG pay a bigger dividend?
HON yields 2.19% and TDG yields 6.80% based on trailing dividends and the latest price.
Is HON or TDG more profitable?
TDG runs the higher net margin — HON at 11.16% versus TDG at 21.29%.
Which has been the better investment, HON or TDG?
Over the past 10-year, TDG delivered the higher annualized total return — HON at 2.67% versus TDG at 23.25%. Past performance doesn't predict future results.

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 30, 2026.