The Intrinsic Value PodcastPublished 2026-10-03
“HEICO Vs. TransDigm: Whose Aerospace Monopoly Is Better?”
$TANo side taken
TransDigm is a strong monopoly business with mid-to-low teens return potential, but the speaker prefers other holdings (HEICO) or staying on the sidelines due to leverage and risk concerns.
And with Trans Am it's almost a reverse. The stock is cheaper, but more of the risk sits inside of the business itself. And that makes sense. And so the growth of both businesses has just been insanely impressive.
And it really comes down to two things organic growth or the ability to continue growing revenues of their subsidiaries that they already own, and then inorganic growth or the revenue associated with consolidating their income statements with newly acquired businesses.