Critical Analysis: TAT Technologies (NASDAQ:TATT) versus EHang (NASDAQ:EH)

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

Profitability

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

Net Margins Return on Equity Return on Assets
EHang -74.74% -32.73% -17.02%
TAT Technologies 11.26% 9.84% 7.58%

Insider and Institutional Ownership

94.0% of EHang shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 39.6% of EHang shares are held by company insiders. Comparatively, 8.7% of TAT Technologies 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.

Analyst Ratings

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

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

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

Risk and Volatility

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

Valuation & Earnings

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

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

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.

Summary

TAT Technologies beats EHang on 11 of the 15 factors compared between the two stocks.

About EHang

(Get Free Report)

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.

About TAT Technologies

(Get Free Report)

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.

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