Critical Review: TAT Technologies (NASDAQ:TATT) vs. Ballistic Recovery (OTCMKTS:BRSI)

TAT Technologies (NASDAQ:TATT) and Ballistic Recovery (OTCMKTS:BRSI) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares TAT Technologies and Ballistic Recovery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$172.53 million	2.81	$11.17 million	$1.33	29.00
Ballistic Recovery	N/A	N/A	N/A	N/A	N/A

TAT Technologies has higher revenue and earnings than Ballistic Recovery.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TAT Technologies and Ballistic Recovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	1	0	6	0	2.71
Ballistic Recovery	0	0	0	0	0.00

TAT Technologies presently has a consensus target price of $47.80, suggesting a potential upside of 23.95%. Given TAT Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe TAT Technologies is more favorable than Ballistic Recovery.

Institutional and Insider Ownership

15.1% of TAT Technologies shares are owned by institutional investors. 8.8% of TAT Technologies shares are owned by insiders. Comparatively, 45.3% of Ballistic Recovery shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

TAT Technologies has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Ballistic Recovery has a beta of -1.73, meaning that its stock price is 273% less volatile than the S&P 500.

Profitability

This table compares TAT Technologies and Ballistic Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	8.21%	10.90%	7.76%
Ballistic Recovery	N/A	N/A	N/A

Summary

TAT Technologies beats Ballistic Recovery on 9 of the 10 factors compared between the two stocks.

About TAT Technologies

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.

About Ballistic Recovery

Ballistic Recovery Systems Inc. develops and commercializes parachute systems in the United States. The company operates in three segments: Aviation, Defense, and Space. The Aviation segment designs, tests, and produces whole-aircraft emergency recovery parachute systems for the general aviation and recreational aircraft industries. The Defense segment designs, tests, and produces personnel parachute systems, precision guided aerial delivery systems, and cargo and whole-aircraft emergency recovery parachutes used in unmanned aerial vehicles and training aircrafts. The Space segment designs, tests, and produces entry, descent, and landing systems for various space applications, as well as manned and un-manned, planetary, and terrestrial space applications. The company also provides safety apparel. Ballistic Recovery Systems Inc. was founded in 1980 and is based in South Saint Paul, Minnesota.