Head to Head Analysis: Axon Enterprise (NASDAQ:AXON) and TAT Technologies (NASDAQ:TATT)

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

Analyst Ratings

This is a breakdown of current recommendations for TAT Technologies and Axon Enterprise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	3	5	2	2.90
Axon Enterprise	0	4	13	0	2.76

TAT Technologies presently has a consensus price target of $58.83, indicating a potential upside of 58.99%. Axon Enterprise has a consensus price target of $612.18, indicating a potential upside of 100.03%. Given Axon Enterprise’s higher probable upside, analysts clearly believe Axon Enterprise is more favorable than TAT Technologies.

Institutional and Insider Ownership

15.1% of TAT Technologies shares are held by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are held by institutional investors. 8.7% of TAT Technologies shares are held by company insiders. Comparatively, 4.2% of Axon Enterprise shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares TAT Technologies and Axon Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	12.17%	11.02%	8.52%
Axon Enterprise	7.56%	3.87%	1.81%

Earnings and Valuation

This table compares TAT Technologies and Axon Enterprise”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$178.01 million	2.70	$16.82 million	$1.81	20.44
Axon Enterprise	$2.78 billion	8.97	$124.66 million	$3.12	98.09

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

Volatility and Risk

TAT Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Summary

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

About TAT Technologies

TAT Technologies Ltd. is an aerospace and defense company that designs, manufactures, and services thermal-management and other aircraft systems. Its products include heat exchangers and environmental control systems used in commercial and military aircraft. The company also provides maintenance, repair, and overhaul services for aircraft components, including auxiliary power units, heat exchangers, and other systems. These services support airlines, original equipment manufacturers, and military customers.

About Axon Enterprise

Axon Enterprise develops technology and services for public safety agencies. Its products include TASER conducted-energy weapons, body-worn and in-car cameras, and related hardware designed to support law enforcement and other safety professionals. The company also provides cloud-based software for managing digital evidence, records and operational workflows. Its Axon Evidence platform helps agencies store, organize and share video and other evidence, while its broader software offerings include tools for dispatch and records management.