WallStSmart

Parker-Hannifin Corporation (PH)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 121% more annual revenue ($20.99B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 16.6%. TDG appears more attractively valued with a PEG of 3.05. TDG earns a higher WallStSmart Score of 57/100 (C).

PH

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 3.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.78

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 PH.

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

PH3 strengths · Avg: 8.7/10
Market CapQuality
$105.45B9/10

Large-cap with strong market position

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

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

PH3 concerns · Avg: 2.7/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.2%2/10

Earnings declined 4.2%

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 : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 21.5%. Revenue growth of 10.6% demonstrates continued momentum.

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 : PH

The primary concerns for PH are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : TDG

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

Key Dynamics to Monitor

PH profiles as a mature stock while TDG is a growth play — different risk/reward profiles.

PH carries more volatility with a beta of 1.18 — expect wider price swings.

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

PH generates stronger free cash flow (881M), providing more financial flexibility.

Bottom Line

TDG scores higher overall (57/100 vs 55/100), 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.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

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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