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).

Compare

Total return — PCAR vs TDG

growth of $100 · last 20y
PCAR +463.7%TDG +5411.7%TDG compounded faster
Log scale — wide-divergence pair
101001k10kStart $10020102014201820222026$564$5,512
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 9

It 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

MetricPCARTDG
P/E ratio25.3141.46
Forward P/E20.9628.28
P/S ratio2.308.14
P/B ratio3.18
PEG ratio2.011.47
EV / EBITDA18.8622.04
FCF yield5.21%2.39%

Profitability

MetricPCARTDG
Gross margin15.11%59.02%
Operating margin9.68%46.51%
Net margin9.09%21.29%
ROE12.53%-21.41%
ROIC6.39%15.22%

Dividends

MetricPCARTDG
Dividend yield2.30%6.78%
Payout ratio60.62%280.55%

Growth (annualized)

MetricPCARTDG
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.

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.