Critical Analysis: TAT Technologies (TATT) vs. Its Rivals

TAT Technologies (NASDAQ:TATT) is one of 46 publicly-traded companies in the “AEROSP/DEF EQ” industry, but how does it weigh in compared to its competitors? We will compare TAT Technologies to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Volatility and Risk

TAT Technologies has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, TAT Technologies’ competitors have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares TAT Technologies and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TAT Technologies	$152.12 million	$11.17 million	25.69
TAT Technologies Competitors	$3.49 billion	$265.08 million	78.63

TAT Technologies’ competitors have higher revenue and earnings than TAT Technologies. TAT Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

15.1% of TAT Technologies shares are held by institutional investors. Comparatively, 65.1% of shares of all “AEROSP/DEF EQ” companies are held by institutional investors. 8.8% of TAT Technologies shares are held by company insiders. Comparatively, 8.8% of shares of all “AEROSP/DEF EQ” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for TAT Technologies and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	0	3	0	3.00
TAT Technologies Competitors	349	1819	2797	98	2.52

TAT Technologies presently has a consensus target price of $36.00, suggesting a potential upside of 19.76%. As a group, “AEROSP/DEF EQ” companies have a potential downside of 1.09%. Given TAT Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe TAT Technologies is more favorable than its competitors.

Profitability

This table compares TAT Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	8.04%	11.90%	8.05%
TAT Technologies Competitors	-42.31%	-0.47%	3.41%

Summary

TAT Technologies competitors beat TAT Technologies on 7 of the 13 factors compared.

TAT Technologies Company Profile

TAT Technologies Ltd., together with its subsidiaries, provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally. The company operates through four segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories; Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions; MRO Services for Aviation Components; and Overhaul and Coating of Jet Engine Components. It designs, develops, and manufactures a range of heat transfer solutions, such as pre-cooler and oil/fuel hydraulic heat exchangers used in mechanical and electronic systems in commercial, military, and business aircraft; environmental control and power electronics cooling systems for use in aircraft and ground applications; and a range of other mechanical aircraft accessories and systems, such as pumps, valves, and turbine power units. The company provides MRO services for heat transfer components, as well as for manufacturing heat transfer solutions; and aviation components. In addition, it engages in the operation of a repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers, and the military; and the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, and afterburner flaps. The company was formerly known as Galagraph Ltd. and changed its name to TAT Technologies Ltd. in May 1992. TAT Technologies Ltd. was founded in 1969 and is headquartered in Netanya, Israel.