Rocket Lab Corp vs TransDigm Group Incorporated, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
TransDigm makes money the way few in aerospace do, a 21.91% net margin on proprietary components, priced at 41.34 times earnings for the privilege, a $77.1B cap, cash conversion of 2.4%. Rocket Lab, at $51.2B, makes no money yet, losing 26.87 cents per revenue dollar as it builds out small-launch and space-systems capacity, with almost no debt at 0.02. TransDigm's price rests on profits it already collects from parts with no substitute. Rocket Lab's price rests on a space business that has to first turn its heavy spending into earnings. One compounds proven margin; the other funds a bet on tomorrow.
Comparison updated 2026-07-11.
| Metric | RKLB | TDG |
|---|---|---|
| Price | $81.08 | $1291.90 |
| Market cap | $49.1B | $75.2B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Growth | Growth |
| Implied growth (priced in) | — | +13.1% |
| P/E | — | 40.3 |
| P/B | 21.68 | — |
| P/S | 72.23 | 7.91 |
| EV/EBITDA | — | 22.2 |
| Revenue growth | +45.8% | +13.3% |
| Gross margin | 38.2% | 59.4% |
| Operating margin | -27.9% | 46.3% |
| Net margin | -26.9% | 21.9% |
| Return on equity | -8.1% | — |
| Return on assets | -6.5% | 8.2% |
| Return on invested capital | -7.8% | 15.4% |
| FCF yield | -0.6% | 2.5% |
| Debt / equity | 0.02 | — |
| Current ratio | 4.47 | 3.52 |
| Altman Z (solvency) | 6.25 | 1.58 |
| Piotroski F (quality) | 2 / 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.