Critical Comparison: FTAI Aviation (NASDAQ:FTAI) versus TAT Technologies (NASDAQ:TATT)

FTAI Aviation (NASDAQ:FTAI) and TAT Technologies (NASDAQ:TATT) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

FTAI Aviation has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares FTAI Aviation and TAT Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	6.32	$501.06 million	$4.60	33.56
TAT Technologies	$178.01 million	2.31	$16.82 million	$1.60	19.78

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

Insider & Institutional Ownership

89.0% of FTAI Aviation shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 1.4% of FTAI Aviation shares are held by insiders. Comparatively, 8.7% of TAT Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.94%	139.59%	11.26%
TAT Technologies	11.26%	9.84%	7.58%

Analyst Ratings

This is a breakdown of recent ratings and target prices for FTAI Aviation and TAT Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	8	0	2.80
TAT Technologies	0	3	4	2	2.89

FTAI Aviation presently has a consensus target price of $310.62, suggesting a potential upside of 101.22%. TAT Technologies has a consensus target price of $59.17, suggesting a potential upside of 86.94%. Given FTAI Aviation’s higher probable upside, analysts plainly believe FTAI Aviation is more favorable than TAT Technologies.

Summary

FTAI Aviation beats TAT Technologies on 12 of the 15 factors compared between the two stocks.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, 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.