PACCAR Inc (PCAR) vs TransDigm Group Incorporated (TDG)
TDG leads on 9 of 16 compared metrics, though PCAR is the cheaper stock.
A side-by-side comparison of PACCAR Inc and TransDigm Group Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 19, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Total return — PCAR vs TDG
growth of $100 · last 20yPCAR +463.7%TDG +5411.7%TDG compounded faster
Log scale — wide-divergence pair
PCAR TDG
PCAR vs TDG: by the numbers
- •TDG is the larger company ($74.30B vs $62.60B market cap).
- •PCAR trades at the lower earnings multiple (25.31 vs 41.46 P/E).
- •TDG converts more revenue to profit (21.29% vs 9.09% net margin).
- •TDG grew revenue faster over the past five years (14.19% vs 7.01% CAGR).
- •TDG pays the higher dividend yield (6.78% vs 2.30%).
Which is better, PCAR or TDG?
Metric tally: PCAR 7 · TDG 9It depends on what you're optimizing for:
ValuePCAR(lower P/E)
GrowthTDG(faster 5Y revenue CAGR)
IncomeTDG(higher dividend yield)
QualityTDG(higher ROIC)
Metrics side by side
Valuation
| Metric | PCAR | TDG |
|---|---|---|
| P/E ratio | 25.31● | 41.46 |
| Forward P/E | 20.96● | 28.28 |
| P/S ratio | 2.30● | 8.14 |
| P/B ratio | 3.18 | — |
| PEG ratio | 2.01 | 1.47● |
| EV / EBITDA | 18.86● | 22.04 |
| FCF yield | 5.21%● | 2.39% |
Profitability
| Metric | PCAR | TDG |
|---|---|---|
| Gross margin | 15.11% | 59.02%● |
| Operating margin | 9.68% | 46.51%● |
| Net margin | 9.09% | 21.29%● |
| ROE | 12.53%● | -21.41% |
| ROIC | 6.39% | 15.22%● |
Dividends
| Metric | PCAR | TDG |
|---|---|---|
| Dividend yield | 2.30% | 6.78%● |
| Payout ratio | 60.62% | 280.55% |
Growth (annualized)
| Metric | PCAR | TDG |
|---|---|---|
| Revenue CAGR (5Y) | 7.01% | 14.19%● |
| EPS CAGR (5Y) | 12.58% | 31.14%● |
| FCF CAGR (5Y) | 15.97%● | 13.70% |
| Total return CAGR (5Y) | 17.67% | 19.52%● |
Frequently asked
- Which is better, PCAR or TDG?
- It depends on your goal. value: PCAR (lower P/E); growth: TDG (faster 5Y revenue CAGR); income: TDG (higher dividend yield); quality: TDG (higher ROIC). Across all compared metrics, TDG leads 9 to 7.
- Is PCAR or TDG cheaper?
- On trailing earnings, PCAR is cheaper: PCAR trades at a 25.31 P/E and TDG at 41.46.
- Which has grown faster, PCAR or TDG?
- Over the past five years, TDG grew revenue faster — PCAR at a 7.01% CAGR versus TDG at 14.19%.
- Does PCAR or TDG pay a bigger dividend?
- PCAR yields 2.30% and TDG yields 6.78% based on trailing dividends and the latest price.
- Is PCAR or TDG more profitable?
- TDG runs the higher net margin — PCAR at 9.09% versus TDG at 21.29%.
- Which has been the better investment, PCAR or TDG?
- Over the past 10-year, TDG delivered the higher annualized total return — PCAR at 15.02% versus TDG at 23.35%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
PACCAR P/E ratioTransDigm P/E ratioPACCAR dividend yieldTransDigm dividend yieldPACCAR ROETransDigm ROEPACCAR operating marginTransDigm operating marginPACCAR revenue growthTransDigm revenue growthPACCAR free cash flowTransDigm free cash flow
PACCAR & 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 19, 2026.