TAT Technologies (NASDAQ:TATT – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both small-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
15.1% of TAT Technologies shares are held by institutional investors. Comparatively, 26.4% of Outdoor shares are held by institutional investors. 8.8% of TAT Technologies shares are held by company insiders. Comparatively, 25.0% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares TAT Technologies and Outdoor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TAT Technologies | $152.12 million | 2.11 | $11.17 million | $1.17 | 21.88 |
| Outdoor | $49.40 million | 3.24 | -$16.59 million | ($0.58) | -2.36 |
TAT Technologies has higher revenue and earnings than Outdoor. Outdoor is trading at a lower price-to-earnings ratio than TAT Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TAT Technologies has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for TAT Technologies and Outdoor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TAT Technologies | 0 | 0 | 3 | 0 | 3.00 |
| Outdoor | 0 | 1 | 0 | 0 | 2.00 |
TAT Technologies currently has a consensus target price of $36.00, indicating a potential upside of 40.63%. Outdoor has a consensus target price of $1.50, indicating a potential upside of 9.49%. Given TAT Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe TAT Technologies is more favorable than Outdoor.
Profitability
This table compares TAT Technologies and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TAT Technologies | 8.04% | 11.90% | 8.05% |
| Outdoor | -49.83% | -16.17% | -13.55% |
Summary
TAT Technologies beats Outdoor on 10 of the 14 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 Outdoor
AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.
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