Head to Head Analysis: Astronics (NASDAQ:ATRO) & TAT Technologies (NASDAQ:TATT)

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

Earnings and Valuation

This table compares Astronics and TAT Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astronics	$862.13 million	3.36	$29.36 million	$1.18	68.53
TAT Technologies	$177.02 million	2.72	$16.82 million	$1.29	28.74

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

Analyst Recommendations

This is a summary of current ratings and target prices for Astronics and TAT Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astronics	1	1	2	2	2.83
TAT Technologies	1	0	5	3	3.11

Astronics presently has a consensus target price of $77.33, indicating a potential downside of 4.36%. TAT Technologies has a consensus target price of $57.29, indicating a potential upside of 54.53%. Given TAT Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe TAT Technologies is more favorable than Astronics.

Insider and Institutional Ownership

56.7% of Astronics shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 8.9% of Astronics shares are held by company insiders. Comparatively, 8.8% of TAT Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astronics	5.12%	49.34%	12.10%
TAT Technologies	9.27%	9.47%	7.31%

Volatility and Risk

Astronics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

Astronics beats TAT Technologies on 9 of the 15 factors compared between the two stocks.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.

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.