Comparing FTAI Aviation (NASDAQ:FTAI) and TAT Technologies (NASDAQ:TATT)

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

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	15.46%	135.72%	11.85%
TAT Technologies	11.26%	9.84%	7.58%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FTAI Aviation and TAT Technologies, as provided by MarketBeat.

	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 currently has a consensus price target of $304.38, suggesting a potential upside of 62.53%. TAT Technologies has a consensus price target of $58.33, suggesting a potential upside of 83.44%. Given TAT Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe TAT Technologies is more favorable than FTAI Aviation.

Valuation & Earnings

This table compares FTAI Aviation 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
FTAI Aviation	$2.51 billion	7.67	$501.06 million	$4.60	40.71
TAT Technologies	$178.01 million	2.32	$16.82 million	$1.60	19.88

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 and 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

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

Summary

FTAI Aviation beats TAT Technologies on 11 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.