Analyzing TAT Technologies (NASDAQ:TATT) and StandardAero (NYSE:SARO)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$6.06 billion	1.50	$277.42 million	$1.05	26.35
TAT Technologies	$178.01 million	2.75	$16.82 million	$1.81	20.77

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.

Volatility and Risk

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

Analyst Ratings

This is a breakdown of current ratings and price targets for StandardAero and TAT Technologies, as reported by MarketBeat.com.

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

StandardAero currently has a consensus target price of $33.55, suggesting a potential upside of 21.23%. TAT Technologies has a consensus target price of $60.20, suggesting a potential upside of 60.11%. Given TAT Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe TAT Technologies is more favorable than StandardAero.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StandardAero	5.46%	16.27%	6.53%
TAT Technologies	12.17%	11.02%	8.52%

Institutional & Insider Ownership

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

Summary

TAT Technologies beats StandardAero on 9 of the 14 factors compared between the two stocks.

About StandardAero

StandardAero is a provider of maintenance, repair and overhaul services for the aerospace and aviation industries. Its work includes servicing and repairing aircraft engines, airframes and related components, as well as providing engineering and other technical support. The company serves customers across business and general aviation, commercial aviation, military and helicopter markets. Its services support aircraft operators, airlines, original equipment manufacturers and government organizations, with operations and facilities serving customers in multiple regions worldwide.

About TAT Technologies

TAT Technologies Ltd. is an aerospace and defense company that designs, manufactures, and services thermal-management and other aircraft systems. Its products include heat exchangers and environmental control systems used in commercial and military aircraft. The company also provides maintenance, repair, and overhaul services for aircraft components, including auxiliary power units, heat exchangers, and other systems. These services support airlines, original equipment manufacturers, and military customers.