Head to Head Survey: TAT Technologies (NASDAQ:TATT) and Curtiss-Wright (NYSE:CW)

Curtiss-Wright (NYSE:CW) and TAT Technologies (NASDAQ:TATT) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Curtiss-Wright and TAT Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss-Wright	0	3	4	0	2.57
TAT Technologies	0	1	6	1	3.00

Curtiss-Wright presently has a consensus target price of $663.17, indicating a potential downside of 4.24%. TAT Technologies has a consensus target price of $53.17, indicating a potential downside of 7.28%. Given Curtiss-Wright’s higher possible upside, research analysts plainly believe Curtiss-Wright is more favorable than TAT Technologies.

Dividends

Curtiss-Wright pays an annual dividend of $0.96 per share and has a dividend yield of 0.1%. TAT Technologies pays an annual dividend of $0.34 per share and has a dividend yield of 0.6%. Curtiss-Wright pays out 7.5% of its earnings in the form of a dividend. TAT Technologies pays out 25.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Curtiss-Wright has raised its dividend for 8 consecutive years.

Risk & Volatility

Curtiss-Wright has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Curtiss-Wright and TAT Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss-Wright	$3.50 billion	7.30	$484.23 million	$12.87	53.81
TAT Technologies	$172.53 million	4.18	$11.17 million	$1.33	43.11

Curtiss-Wright has higher revenue and earnings than TAT Technologies. TAT Technologies is trading at a lower price-to-earnings ratio than Curtiss-Wright, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Curtiss-Wright and TAT Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss-Wright	13.84%	19.28%	9.73%
TAT Technologies	9.08%	11.10%	8.12%

Insider and Institutional Ownership

82.7% of Curtiss-Wright shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 0.6% of Curtiss-Wright shares are held by company insiders. Comparatively, 8.8% of TAT Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Curtiss-Wright beats TAT Technologies on 12 of the 18 factors compared between the two stocks.

About Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.

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.