ONTO vs. TDG

Last updated Jun 13, 2026

ONTO (Onto Innovation Inc.) and TDG (TransDigm Group Incorporated) are both stocks. ONTO operates in Semiconductor Equipment & Materials (Technology), while TDG operates in Aerospace & Defense (Industrials). Over the past 10 years, ONTO returned 33.01%/yr vs 22.72%/yr for TDG. At a 0.32 correlation, their price movements are largely independent.

Performance

ONTO vs. TDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Onto Innovation Inc. (ONTO) 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, ONTO achieves a 105.17% return, which is significantly higher than TDG's -5.55% return. Over the past 10 years, ONTO has outperformed TDG with an annualized return of 33.01%, while TDG has yielded a comparatively lower 22.72% annualized return.

ONTO

• 1D: 6.70%
• 1M: 16.94%
• YTD: 105.17%
• 6M: 107.14%
• 1Y: 223.88%
• 3Y*: 42.57%
• 5Y*: 33.99%
• 10Y*: 33.01%

TDG

• 1D: -0.12%
• 1M: 4.55%
• YTD: -5.55%
• 6M: -2.98%
• 1Y: -6.51%
• 3Y*: 22.32%
• 5Y*: 17.95%
• 10Y*: 22.72%

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

ONTO vs. TDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ONTO Onto Innovation Inc.	105.17%	-5.29%	9.01%	124.56%	-32.74%	112.89%	30.13%	33.70%	9.67%	-0.56%
TDG TransDigm Group Incorporated	-5.55%	12.15%	32.27%	66.57%	1.77%	2.82%	10.51%	84.41%	23.83%	19.84%

Correlation

The correlation between ONTO and TDG is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Mar 15, 2006	0.32

The correlation between ONTO and TDG shifts across timeframes, from 0.15 (1 year) to 0.40 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ONTO : $16.20B TDG : $73.10B
EPS ONTO : $2.15 TDG : $34.79
PE Ratio ONTO : 150.40 TDG : 36.10
PEG Ratio ONTO : 13.49 TDG : 1.07
PS Ratio ONTO : 15.53 TDG : 7.69
Total Revenue (TTM) ONTO : $1.03B TDG : $9.50B
Gross Profit (TTM) ONTO : $502.93M TDG : $5.61B
EBITDA (TTM) ONTO : $177.93M TDG : $4.78B

Return for Risk

ONTO vs. TDG — Risk / Return Rank

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

ONTO

ONTO Risk / Return Rank: 96
ONTO Sharpe Ratio Rank: 98
ONTO Sortino Ratio Rank: 95
ONTO Omega Ratio Rank: 93
ONTO Calmar Ratio Rank: 98
ONTO Martin Ratio Rank: 98

TDG

TDG Risk / Return Rank: 32
TDG Sharpe Ratio Rank: 33
TDG Sortino Ratio Rank: 29
TDG Omega Ratio Rank: 29
TDG Calmar Ratio Rank: 35
TDG Martin Ratio Rank: 35

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.

ONTO vs. TDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Onto Innovation Inc. (ONTO) 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.

	ONTO	TDG	Difference
Sharpe ratio: Return per unit of total volatility	3.91	-0.23	+4.14
Sortino ratio: Return per unit of downside risk	3.76	-0.12	+3.88
Omega ratio: Gain probability vs. loss probability	1.47	0.98	+0.48
Calmar ratio: Return relative to maximum drawdown	11.14	-0.26	+11.39
Martin ratio: Return relative to average drawdown	30.28	-0.44	+30.72

ONTO vs. TDG - Sharpe Ratio Comparison

The current ONTO Sharpe Ratio is 3.91, which is higher than the TDG Sharpe Ratio of -0.23. The chart below compares the historical Sharpe Ratios of ONTO 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

ONTO vs. TDG - Drawdown Comparison

The maximum ONTO drawdown since its inception was -98.56%, which is greater than TDG's maximum drawdown of -62.64%. Use the drawdown chart below to compare losses from any high point for ONTO and TDG.

Drawdown Indicators

	ONTO	TDG	Difference
Max Drawdown Largest peak-to-trough decline	-98.56%	-62.64%	-35.92%
Max Drawdown (1Y) Largest decline over 1 year	-20.24%	-25.30%	+5.06%
Max Drawdown (3Y) Largest decline over 3 years	-62.82%	-25.30%	-37.52%
Max Drawdown (5Y) Largest decline over 5 years	-62.82%	-25.30%	-37.52%
Max Drawdown (10Y) Largest decline over 10 years	-62.82%	-62.64%	-0.18%
Current Drawdown Current decline from peak	0.00%	-17.18%	+17.18%
Average Drawdown Average peak-to-trough decline	-54.69%	-7.95%	-46.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.45%	14.75%	-7.30%

Volatility

ONTO vs. TDG - Volatility Comparison

Onto Innovation Inc. (ONTO) has a higher volatility of 22.52% compared to TransDigm Group Incorporated (TDG) at 9.84%. This indicates that ONTO'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

	ONTO	TDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.52%	9.84%	+12.68%
Volatility (6M) Calculated over the trailing 6-month period	44.08%	21.88%	+22.20%
Volatility (1Y) Calculated over the trailing 1-year period	57.63%	28.32%	+29.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.75%	27.96%	+27.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	51.41%	33.83%	+17.58%

Dividends

ONTO vs. TDG - Dividend Comparison

ONTO has not paid dividends to shareholders, while TDG's dividend yield for the trailing twelve months is around 7.17%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
ONTO Onto Innovation Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TDG TransDigm Group Incorporated	7.17%	6.77%	5.92%	3.46%	2.94%	0.00%	0.00%	11.16%	0.00%	8.01%	9.64%

Financials

ONTO vs. TDG - Profitability Comparison

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

ONTO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Onto Innovation Inc. reported a gross profit of 146.39M and revenue of 291.95M. Therefore, the gross margin over that period was 50.1%.

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%.

ONTO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Onto Innovation Inc. reported an operating income of 33.51M and revenue of 291.95M, resulting in an operating margin of 11.5%.

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%.

ONTO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Onto Innovation Inc. reported a net income of 33.75M and revenue of 291.95M, resulting in a net margin of 11.6%.

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 ONTO and TDG in my portfolio?

ONTO and TDG have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ONTO or TDG?

ONTO has higher volatility (22.52%) compared to TDG (9.84%). In terms of maximum drawdown, ONTO dropped -98.56% vs TDG's -62.64%.

Which has better risk-adjusted returns?

ONTO currently has the higher Sharpe Ratio (3.91 vs -0.23), 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.