Analyzing Axon Enterprise (NASDAQ:AXON) and TAT Technologies (NASDAQ:TATT)

Axon Enterprise (NASDAQ:AXON) and TAT Technologies (NASDAQ:TATT) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. Comparatively, 15.1% of TAT Technologies shares are owned by institutional investors. 4.2% of Axon Enterprise shares are owned by insiders. Comparatively, 8.7% of TAT Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Axon Enterprise and TAT Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	7.56%	3.87%	1.81%
TAT Technologies	12.17%	11.02%	8.52%

Volatility and Risk

Axon Enterprise has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Axon Enterprise and TAT Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$3.42 billion	7.19	$124.66 million	$3.12	96.97
TAT Technologies	$178.01 million	2.86	$16.82 million	$1.81	21.65

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Axon Enterprise and TAT Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	4	13	0	2.76
TAT Technologies	0	3	5	2	2.90

Axon Enterprise presently has a consensus target price of $612.18, indicating a potential upside of 102.35%. TAT Technologies has a consensus target price of $58.83, indicating a potential upside of 50.12%. Given Axon Enterprise’s higher probable upside, research analysts plainly believe Axon Enterprise is more favorable than TAT Technologies.

Summary

Axon Enterprise beats TAT Technologies on 9 of the 15 factors compared between the two stocks.

About Axon Enterprise

Axon Enterprise develops technology and services for public safety agencies. Its products include TASER conducted-energy weapons, body-worn and in-car cameras, and related hardware designed to support law enforcement and other safety professionals. The company also provides cloud-based software for managing digital evidence, records and operational workflows. Its Axon Evidence platform helps agencies store, organize and share video and other evidence, while its broader software offerings include tools for dispatch and records management.

About TAT Technologies

TAT Technologies Ltd. is an aerospace and defense company headquartered in Netanya, Israel. The company develops, manufactures, and services thermal-management and other specialized systems used in commercial, military, business, and general aviation applications. Its product portfolio includes heat exchangers, air-conditioning and environmental-control components, air-cycle machines, pre-coolers, oil coolers, fuel heaters, pumps, and related aircraft systems. TAT also provides maintenance, repair, and overhaul services for aircraft heat-transfer equipment, auxiliary power units, landing-gear components, and other aviation parts.