Financial Review: TAT Technologies (NASDAQ:TATT) & StandardAero (NYSE:SARO)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$178.01 million	2.82	$16.82 million	$1.81	21.30
StandardAero	$6.06 billion	1.58	$277.42 million	$1.05	27.54

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

Insider & Institutional Ownership

15.1% of TAT Technologies shares are held by institutional investors. 8.7% of TAT Technologies shares are held by insiders. Comparatively, 2.1% of StandardAero shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

TAT Technologies has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, StandardAero has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares TAT Technologies and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	12.17%	11.02%	8.52%
StandardAero	5.12%	14.52%	5.80%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	3	5	2	2.90
StandardAero	0	6	7	2	2.73

TAT Technologies presently has a consensus target price of $58.83, suggesting a potential upside of 52.62%. StandardAero has a consensus target price of $33.55, suggesting a potential upside of 16.02%. Given TAT Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe TAT Technologies is more favorable than StandardAero.

Summary

TAT Technologies beats StandardAero on 9 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 StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.