Head-To-Head Review: TAT Technologies (NASDAQ:TATT) vs. Environmental Tectonics (OTCMKTS:ETCC)

TAT Technologies (NASDAQ:TATT) and Environmental Tectonics (OTCMKTS:ETCC) are both small-cap aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

15.1% of TAT Technologies shares are owned by institutional investors. 8.8% of TAT Technologies shares are owned by insiders. Comparatively, 74.8% of Environmental Tectonics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

TAT Technologies has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TAT Technologies and Environmental Tectonics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	1	6	1	3.00
Environmental Tectonics	0	0	0	0	0.00

TAT Technologies presently has a consensus price target of $56.67, suggesting a potential upside of 42.88%. Given TAT Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TAT Technologies is more favorable than Environmental Tectonics.

Earnings & Valuation

This table compares TAT Technologies and Environmental Tectonics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$178.01 million	2.89	$16.82 million	$1.37	28.95
Environmental Tectonics	$62.94 million	0.11	$13.06 million	$0.60	1.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	9.45%	10.69%	8.06%
Environmental Tectonics	15.91%	281.64%	11.13%

Summary

TAT Technologies beats Environmental Tectonics on 11 of the 15 factors compared between the two stocks.

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.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.