AeroVironment (NASDAQ:AVAV) & TAT Technologies (NASDAQ:TATT) Head-To-Head Contrast

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

Risk and Volatility

AeroVironment has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AeroVironment	-13.93%	3.26%	2.56%
TAT Technologies	9.27%	9.47%	7.31%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AeroVironment	1	3	18	2	2.88
TAT Technologies	0	2	4	3	3.11

AeroVironment currently has a consensus price target of $318.78, suggesting a potential upside of 87.95%. TAT Technologies has a consensus price target of $57.29, suggesting a potential upside of 22.51%. Given AeroVironment’s higher probable upside, analysts clearly believe AeroVironment is more favorable than TAT Technologies.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AeroVironment	$820.63 million	10.32	$43.62 million	($4.34)	-39.08
TAT Technologies	$178.01 million	3.41	$16.82 million	$1.29	36.25

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

Insider and Institutional Ownership

86.4% of AeroVironment shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 0.8% of AeroVironment 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 will outperform the market over the long term.

Summary

TAT Technologies beats AeroVironment on 8 of the 15 factors compared between the two stocks.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

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.