Critical Analysis: BWX Technologies (NYSE:BWXT) vs. TAT Technologies (NASDAQ:TATT)

BWX Technologies (NYSE:BWXTGet Free Report) and TAT Technologies (NASDAQ:TATTGet Free Report) are both aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
BWX Technologies 10.20% 31.33% 9.62%
TAT Technologies 9.27% 9.47% 7.31%

Risk & Volatility

BWX Technologies has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

94.4% of BWX Technologies shares are owned by institutional investors. Comparatively, 15.1% of TAT Technologies shares are owned by institutional investors. 0.6% of BWX Technologies 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, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BWX Technologies and TAT Technologies”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BWX Technologies $3.20 billion 5.71 $328.95 million $3.74 53.27
TAT Technologies $178.01 million 3.05 $16.82 million $1.29 32.43

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for BWX Technologies and TAT Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BWX Technologies 1 4 8 2 2.73
TAT Technologies 0 1 5 3 3.22

BWX Technologies presently has a consensus price target of $228.00, indicating a potential upside of 14.44%. TAT Technologies has a consensus price target of $57.29, indicating a potential upside of 36.95%. Given TAT Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe TAT Technologies is more favorable than BWX Technologies.

Summary

BWX Technologies beats TAT Technologies on 10 of the 15 factors compared between the two stocks.

About BWX Technologies

(Get Free Report)

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

About TAT Technologies

(Get Free Report)

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.

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