TAT Technologies (NASDAQ:TATT) versus Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) Financial Survey

TAT Technologies (NASDAQ:TATT) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Valuation & Earnings

This table compares TAT Technologies and Rolls-Royce Holdings PLC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$152.12 million	4.33	$11.17 million	$1.33	39.40
Rolls-Royce Holdings PLC	$24.16 billion	6.11	$3.22 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than TAT Technologies.

Insider & Institutional Ownership

15.1% of TAT Technologies shares are owned by institutional investors. Comparatively, 0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. 8.8% of TAT Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

TAT Technologies has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Rolls-Royce Holdings PLC has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for TAT Technologies and Rolls-Royce Holdings PLC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	1	6	0	2.86
Rolls-Royce Holdings PLC	0	2	2	1	2.80

TAT Technologies presently has a consensus target price of $51.33, suggesting a potential downside of 2.04%. Given TAT Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe TAT Technologies is more favorable than Rolls-Royce Holdings PLC.

Profitability

This table compares TAT Technologies and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	9.08%	11.10%	8.12%
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Summary

TAT Technologies beats Rolls-Royce Holdings PLC on 8 of the 13 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 Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.