L3HARRIS TECHNOLOGIES, INC. vs TransDigm Group Incorporated, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
TransDigm turns proprietary aerospace parts into a 21.91% net margin and a 41.34 times earnings multiple on a $77.1B cap, funded heavily by debt. L3Harris, in defense electronics and communications, keeps far less of each sale, a 4.48% net margin, earns 8.8% on equity, and still trades at 31.62 times earnings and 2.78 times book, a $54.8B cap, on lighter debt of 0.48. L3Harris converts cash better, 4.73% against TransDigm's 2.4%, and pays a 1.65% dividend. TransDigm is the high-margin compounder priced for its grip on irreplaceable components. L3Harris is the thinner-margin contractor that generates more free cash per dollar of market value.
Comparison updated 2026-07-11.
| Metric | LHX | TDG |
|---|---|---|
| Price | $290.81 | $1291.90 |
| Market cap | $54.7B | $75.2B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Mature | Growth |
| Implied growth (priced in) | -2.0% | +13.1% |
| P/E | 31.6 | 40.3 |
| P/B | 2.78 | — |
| P/S | 1.41 | 7.91 |
| EV/EBITDA | 12.3 | 22.2 |
| Revenue growth | +6.0% | +13.3% |
| Gross margin | — | 59.4% |
| Operating margin | 11.3% | 46.3% |
| Net margin | 4.5% | 21.9% |
| Return on equity | 8.8% | — |
| Return on assets | 4.2% | 8.2% |
| Return on invested capital | 11.8% | 15.4% |
| FCF yield | 4.7% | 2.5% |
| Dividend yield | 1.6% | — |
| Debt / equity | 0.48 | — |
| Current ratio | 1.03 | 3.52 |
| Altman Z (solvency) | 2.66 | 1.58 |
| Piotroski F (quality) | 4 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.