AerSale (NASDAQ:ASLE) and Transdigm Group (NYSE:TDG) Head-To-Head Analysis

Transdigm Group (NYSE:TDG) and AerSale (NASDAQ:ASLE) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Transdigm Group and AerSale, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transdigm Group	0	6	11	1	2.72
AerSale	1	3	0	0	1.75

Transdigm Group currently has a consensus target price of $1,584.44, suggesting a potential upside of 24.05%. AerSale has a consensus target price of $7.00, suggesting a potential upside of 8.36%. Given Transdigm Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Transdigm Group is more favorable than AerSale.

Profitability

This table compares Transdigm Group and AerSale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transdigm Group	20.50%	-29.07%	9.43%
AerSale	2.56%	2.71%	1.73%

Insider & Institutional Ownership

95.8% of Transdigm Group shares are held by institutional investors. Comparatively, 69.5% of AerSale shares are held by institutional investors. 3.2% of Transdigm Group shares are held by insiders. Comparatively, 19.2% of AerSale shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Transdigm Group has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, AerSale has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Valuation & Earnings

This table compares Transdigm Group and AerSale”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transdigm Group	$8.83 billion	8.17	$2.07 billion	$31.08	41.10
AerSale	$335.29 million	0.91	$8.57 million	$0.19	34.00

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

Summary

Transdigm Group beats AerSale on 13 of the 15 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 AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.