Financial Survey: Transdigm Group (NYSE:TDG) vs. Ultra Electronics (OTCMKTS:UEHPF)

Ultra Electronics (OTCMKTS:UEHPF) and Transdigm Group (NYSE:TDG) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ultra Electronics	N/A	N/A	N/A
Transdigm Group	20.24%	-26.49%	9.31%

Institutional & Insider Ownership

95.8% of Transdigm Group shares are held by institutional investors. 3.2% of Transdigm Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Ultra Electronics and Transdigm Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultra Electronics	0	0	0	0	0.00
Transdigm Group	0	10	7	0	2.41

Transdigm Group has a consensus target price of $1,477.47, indicating a potential upside of 15.82%. Given Transdigm Group’s stronger consensus rating and higher possible upside, analysts clearly believe Transdigm Group is more favorable than Ultra Electronics.

Valuation & Earnings

This table compares Ultra Electronics and Transdigm Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultra Electronics	N/A	N/A	N/A	N/A	N/A
Transdigm Group	$8.83 billion	8.08	$2.07 billion	$32.04	39.81

Transdigm Group has higher revenue and earnings than Ultra Electronics.

Summary

Transdigm Group beats Ultra Electronics on 8 of the 9 factors compared between the two stocks.

About Ultra Electronics

Ultra Electronics Holdings plc provides application-engineered bespoke solutions in the defense, security, critical detection, and control markets. The company operates through three segments: Maritime, Intelligence & Communications, and Critical Detection & Control. It offers sonobuoys and anti-submarine warfare systems; integrated hull and variable depth sonar systems for manned and unmanned platforms; torpedo defense systems; deployable underwater sensors; electronic warfare systems; and naval systems and sensors, such as acoustic and sonar systems, torpedo defense, and radar sensor solutions, as well as degaussing systems and power conversion solutions for naval applications. The company also provides cutting-edge tactical radios, tactical networking technologies, and satellite communications equipment for militaries; missile flight instrumentation, radio frequency microwave, electronic warfare, simulation and training, and tactical radio frequency solutions and test systems; command, control, and intelligence solutions; and cyber security solutions. In addition, it offers mission- and safety-critical products and systems; manned and unmanned vehicle systems and equipment; ballistic identification; tool mark examination; and forensic analysis system solutions, as well as optical imagery systems, safety sensors, and instrumentation and control systems. The company operates in North America, the United Kingdom, Australia, New Zealand, Mainland Europe, and internationally. Ultra Electronics Holdings plc was incorporated in 1993 and is headquartered in London, the United Kingdom.

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.