HEI vs. TDG

Last updated Jun 23, 2026

HEI (HEICO Corporation) and TDG (TransDigm Group Incorporated) are both stocks. Both operate in the Aerospace & Defense industry within the Industrials sector. Over the past 10 years, HEI returned 26.15%/yr vs 23.19%/yr for TDG. A 0.53 correlation means they provide meaningful diversification when combined.

Performance

HEI vs. TDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in HEICO Corporation (HEI) and TransDigm Group Incorporated (TDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEI achieves a 2.37% return, which is significantly higher than TDG's -2.55% return. Over the past 10 years, HEI has outperformed TDG with an annualized return of 26.15%, while TDG has yielded a comparatively lower 23.19% annualized return.

HEI

• 1D: -1.77%
• 1M: 10.00%
• YTD: 2.37%
• 6M: -0.99%
• 1Y: 5.03%
• 3Y*: 24.10%
• 5Y*: 18.75%
• 10Y*: 26.15%

TDG

• 1D: -2.44%
• 1M: 6.79%
• YTD: -2.55%
• 6M: -0.45%
• 1Y: -3.98%
• 3Y*: 21.26%
• 5Y*: 17.96%
• 10Y*: 23.19%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HEI vs. TDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEI HEICO Corporation	2.37%	36.22%	33.05%	16.56%	6.67%	9.06%	16.16%	47.54%	28.51%	53.04%
TDG TransDigm Group Incorporated	-2.55%	12.15%	32.27%	66.57%	1.77%	2.82%	10.51%	84.41%	23.83%	19.84%

Correlation

The correlation between HEI and TDG is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Mar 15, 2006	0.53

The correlation between HEI and TDG shifts across timeframes, from 0.53 (all time) to 0.66 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap HEI : $46.71B TDG : $75.42B
EPS HEI : $5.60 TDG : $34.79
PE Ratio HEI : 59.14 TDG : 37.25
PEG Ratio HEI : 2.66 TDG : 1.11
PS Ratio HEI : 9.51 TDG : 7.93
Total Revenue (TTM) HEI : $4.91B TDG : $9.50B
Gross Profit (TTM) HEI : $943.00M TDG : $5.61B
EBITDA (TTM) HEI : $1.12B TDG : $4.78B

Return for Risk

HEI vs. TDG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HEI

HEI Risk / Return Rank: 45
HEI Sharpe Ratio Rank: 47
HEI Sortino Ratio Rank: 42
HEI Omega Ratio Rank: 42
HEI Calmar Ratio Rank: 46
HEI Martin Ratio Rank: 47

TDG

TDG Risk / Return Rank: 35
TDG Sharpe Ratio Rank: 36
TDG Sortino Ratio Rank: 31
TDG Omega Ratio Rank: 32
TDG Calmar Ratio Rank: 37
TDG Martin Ratio Rank: 37

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HEI vs. TDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HEICO Corporation (HEI) and TransDigm Group Incorporated (TDG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HEI	TDG	Difference
Sharpe ratio: Return per unit of total volatility	0.15	-0.14	+0.29
Sortino ratio: Return per unit of downside risk	0.47	0.00	+0.47
Omega ratio: Gain probability vs. loss probability	1.06	1.00	+0.06
Calmar ratio: Return relative to maximum drawdown	0.19	-0.16	+0.34
Martin ratio: Return relative to average drawdown	0.45	-0.27	+0.72

HEI vs. TDG - Sharpe Ratio Comparison

The current HEI Sharpe Ratio is 0.15, which is higher than the TDG Sharpe Ratio of -0.14. The chart below compares the historical Sharpe Ratios of HEI and TDG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HEI vs. TDG - Drawdown Comparison

The maximum HEI drawdown since its inception was -75.50%, which is greater than TDG's maximum drawdown of -62.64%. Use the drawdown chart below to compare losses from any high point for HEI and TDG.

Drawdown Indicators

	HEI	TDG	Difference
Max Drawdown Largest peak-to-trough decline	-75.50%	-62.64%	-12.86%
Max Drawdown (1Y) Largest decline over 1 year	-27.11%	-25.30%	-1.81%
Max Drawdown (3Y) Largest decline over 3 years	-27.11%	-25.30%	-1.81%
Max Drawdown (5Y) Largest decline over 5 years	-27.11%	-25.30%	-1.81%
Max Drawdown (10Y) Largest decline over 10 years	-57.73%	-62.64%	+4.91%
Current Drawdown Current decline from peak	-7.51%	-14.55%	+7.04%
Average Drawdown Average peak-to-trough decline	-19.94%	-7.96%	-11.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.22%	14.88%	-3.66%

Volatility

HEI vs. TDG - Volatility Comparison

HEICO Corporation (HEI) has a higher volatility of 14.31% compared to TransDigm Group Incorporated (TDG) at 9.38%. This indicates that HEI's price experiences larger fluctuations and is considered to be riskier than TDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEI	TDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.31%	9.38%	+4.93%
Volatility (6M) Calculated over the trailing 6-month period	27.67%	22.04%	+5.63%
Volatility (1Y) Calculated over the trailing 1-year period	33.39%	28.53%	+4.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.71%	27.97%	-0.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.67%	33.86%	-3.19%

Dividends

HEI vs. TDG - Dividend Comparison

HEI's dividend yield for the trailing twelve months is around 0.07%, less than TDG's 6.94% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEI HEICO Corporation	0.07%	0.07%	0.09%	0.11%	0.12%	0.12%	0.12%	0.12%	0.14%	0.08%	0.22%	0.28%
TDG TransDigm Group Incorporated	6.94%	6.77%	5.92%	3.46%	2.94%	0.00%	0.00%	11.16%	0.00%	8.01%	9.64%	0.00%

Financials

HEI vs. TDG - Profitability Comparison

The chart below illustrates the profitability comparison between HEICO Corporation and TransDigm Group Incorporated over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

HEI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, HEICO Corporation reported a gross profit of -454.96M and revenue of 1.38B. Therefore, the gross margin over that period was -33.1%.

TDG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported a gross profit of 1.51B and revenue of 2.54B. Therefore, the gross margin over that period was 59.4%.

HEI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, HEICO Corporation reported an operating income of 350.44M and revenue of 1.38B, resulting in an operating margin of 25.5%.

TDG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported an operating income of 1.18B and revenue of 2.54B, resulting in an operating margin of 46.3%.

HEI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, HEICO Corporation reported a net income of 233.80M and revenue of 1.38B, resulting in a net margin of 17.0%.

TDG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, TransDigm Group Incorporated reported a net income of 535.00M and revenue of 2.54B, resulting in a net margin of 21.0%.

Frequently Asked Questions

Can I hold both HEI and TDG in my portfolio?

HEI and TDG have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEI or TDG?

HEI has higher volatility (14.31%) compared to TDG (9.38%). In terms of maximum drawdown, HEI dropped -75.50% vs TDG's -62.64%.

Which has better risk-adjusted returns?

HEI currently has the higher Sharpe Ratio (0.15 vs -0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.