WallStSmart

CNH Industrial N.V. (CNH)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CNH Industrial N.V. generates 90% more annual revenue ($18.09B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 2.1%. CNH appears more attractively valued with a PEG of 0.61. TDG earns a higher WallStSmart Score of 57/100 (C).

CNH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.89

TDG

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 7.5Value: 2.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CNH.

TDGSignificantly Overvalued (-63.3%)

Margin of Safety

-63.3%

Fair Value

$812.02

Current Price

$1238.74

$426.72 premium

UndervaluedFair: $812.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNH2 strengths · Avg: 8.0/10
PEG RatioValuation
0.618/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

TDG5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.7%10/10

Strong operational efficiency at 46.7%

Debt/EquityHealth
-3.4010/10

Conservative balance sheet, low leverage

Market CapQuality
$69.75B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

CNH4 concerns · Avg: 3.5/10
P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.894/10

Grey zone — moderate risk

Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
38.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
3.052/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.602/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CNH

The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 21.9% and operating margin at 46.7%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : CNH

The primary concerns for CNH are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

CNH profiles as a value stock while TDG is a growth play — different risk/reward profiles.

CNH carries more volatility with a beta of 1.23 — expect wider price swings.

TDG is growing revenue faster at 18.3% — sustainability is the question.

TDG generates stronger free cash flow (64M), providing more financial flexibility.

Bottom Line

TDG scores higher overall (57/100 vs 51/100), backed by strong 21.9% margins and 18.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CNH Industrial N.V.

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.

Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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