Analyzing HEICO (HEI) & TAT Technologies (TATT)

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

Institutional and Insider Ownership

23.7% of HEICO shares are owned by institutional investors. Comparatively, 2.7% of TAT Technologies shares are owned by institutional investors. 9.9% of HEICO shares are owned by company insiders. Comparatively, 8.8% 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for HEICO and TAT Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HEICO 0 3 5 0 2.63
TAT Technologies 0 0 0 0 N/A

HEICO presently has a consensus price target of $85.08, indicating a potential downside of 5.66%. Given HEICO’s higher possible upside, research analysts clearly believe HEICO is more favorable than TAT Technologies.

Valuation & Earnings

This table compares HEICO and TAT Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HEICO $1.52 billion 6.25 $185.98 million $1.69 53.36
TAT Technologies $106.53 million 0.70 $2.39 million N/A N/A

HEICO has higher revenue and earnings than TAT Technologies.

Volatility & Risk

HEICO has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Dividends

HEICO pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. TAT Technologies does not pay a dividend. HEICO pays out 8.3% of its earnings in the form of a dividend. HEICO has raised its dividend for 8 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
HEICO 13.26% 14.80% 7.67%
TAT Technologies 2.25% 2.93% 2.32%

Summary

HEICO beats TAT Technologies on 14 of the 15 factors compared between the two stocks.

HEICO Company Profile

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company's Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components for aerospace and industrial original equipment manufacturers, and the United States government. This segment also distributes hydraulic, pneumatic, structural, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial airlines, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft. Its Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio interference shielding; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; and high performance communications and electronic intercept receivers and tuners. The company serves the U.S. and foreign military agencies; prime defense contractors; and commercial and defense satellite and spacecraft equipment manufacturers. HEICO Corporation was founded in 1949 and is headquartered in Hollywood, Florida.

TAT Technologies Company Profile

TAT Technologies Ltd., together with its subsidiaries, provides various solutions and services to the commercial and military aerospace, and ground defense industries worldwide. 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 also provides maintenance, repair, and overhaul (MRO) services for heat transfer components; and aviation components, such as APUs, landing gears, and other aircraft components, as well as manufactures heat transfer solutions on original equipment manufacturing basis. In addition, it engages in the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps, and other components. 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 1985 and is headquartered in Gedera, Israel.

Receive News & Ratings for HEICO Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HEICO and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply