While names like Boeing (NYSE: BA) and Airbus (OTCMKTS: EADSY) dominate the market headlines, a different kind of company plays an equally critical, and perhaps more profitable, role in the aerospace industry. TransDigm Group (NYSE: TDG) has built a strong business by focusing on the essential, highly engineered components that keep the global fleet of aircraft flying safely.
Over 90% of the company's revenue comes from proprietary products, many of which it provides on a sole-source basis. This unique market position has allowed the company to build a business that consistently generates impressive returns. So, where does this remarkable profitability come from? The answer lies in the aerospace industry segment that many investors overlook.
