Analyzing EHang (NASDAQ:EH) and TAT Technologies (NASDAQ:TATT)

TAT Technologies (NASDAQ:TATT) and EHang (NASDAQ:EH) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

15.1% of TAT Technologies shares are owned by institutional investors. Comparatively, 94.0% of EHang shares are owned by institutional investors. 8.7% of TAT Technologies shares are owned by company insiders. Comparatively, 39.6% of EHang shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$178.01 million	2.57	$16.82 million	$1.60	21.99
EHang	$72.86 million	4.27	-$39.47 million	($0.62)	-6.68

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

Risk and Volatility

TAT Technologies has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, EHang has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares TAT Technologies and EHang’s 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%
EHang	-74.74%	-32.73%	-17.02%

Analyst Recommendations

This is a summary of recent ratings for TAT Technologies and EHang, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	2	6	2	3.00
EHang	3	5	0	0	1.62

TAT Technologies presently has a consensus price target of $57.86, indicating a potential upside of 64.41%. EHang has a consensus price target of $6.70, indicating a potential upside of 61.84%. Given TAT Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe TAT Technologies is more favorable than EHang.

Summary

TAT Technologies beats EHang on 11 of the 15 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 EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.