Analyzing TAT Technologies (TATT) & Its Peers

TAT Technologies (NASDAQ:TATT) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare TAT Technologies to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, earnings and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for TAT Technologies and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	3	4	2	2.89
TAT Technologies Competitors	2149	8222	12703	577	2.50

TAT Technologies currently has a consensus target price of $58.33, suggesting a potential upside of 83.44%. As a group, “Aerospace & Defense” companies have a potential upside of 25.30%. Given TAT Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe TAT Technologies is more favorable than its rivals.

Institutional & Insider Ownership

15.1% of TAT Technologies shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 8.7% of TAT Technologies shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares TAT Technologies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TAT Technologies	$178.01 million	$16.82 million	19.88
TAT Technologies Competitors	$8.34 billion	$569.54 million	24.75

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

Volatility & Risk

TAT Technologies has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, TAT Technologies’ rivals have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	11.26%	9.84%	7.58%
TAT Technologies Competitors	-289.55%	-47.45%	-4.31%

Summary

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

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.