TransDigm's 47.2% Operating Margin Crushes GE's 21.4%. Why Does GE Still Get the Higher Valuation?

This article compares GE Aerospace and TransDigm Group, two companies benefiting from the aerospace industry’s extended maintenance cycles. It highlights TransDigm’s significantly higher operating margin (47.2%) compared to GE’s (21.4%), yet GE commands a higher valuation. The piece delves into their different business models—GE’s engine services versus TransDigm’s proprietary component supply—and discusses the trade-offs between GE’s stability and scale and TransDigm’s profitability despite higher leverage.