Innovative Solutions and Support, Inc. (IA) vs TAT Technologies Ltd. (TATT)

Innovative Solutions and Support, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. TAT Technologies Ltd. is the larger, with a market value of $466.8M against $324.3M — 1.4× the size. Innovative Solutions and Support, Inc. trades at the lower P/E: 17.0× against 19.7×. Innovative Solutions and Support, Inc. grew revenue faster over the last twelve months: 20.3% against 13.7%. Innovative Solutions and Support, Inc. has the higher net margin (20.5% vs 12.2%) and the higher return on invested capital (13.2% vs 9.16%). Across the 22 metrics below, Innovative Solutions and Support, Inc. leads on 16 and TAT Technologies Ltd. on 6.

Valuation

Metric IA TATT Aerospace & Defense median
P/E 16.99 19.67 28.48
P/S 3.49 2.39 2.95
P/B 4.21 2.38 2.68
Price to free cash flow 22.75 250.83 31.70
EV/EBITDA 12.36 15.20 16.85
EV/Sales 3.96 2.17 2.74
Earnings yield 5.89% 5.08% 0.89%
Free cash flow yield 4.40% 0.40% 0.00%

Profitability

Metric IA TATT Aerospace & Defense median
Gross margin 54.94% 26.64% 26.41%
Operating margin 27.37% 11.52% 3.69%
Net margin 20.50% 12.17% 2.74%
Free cash flow margin 15.34% 1.33% 0.00%
Return on equity 28.50% 12.99% 4.44%
Return on assets 15.93% 9.97% 1.90%
Return on invested capital 13.19% 9.16% 0.26%

Growth

Metric IA TATT Aerospace & Defense median
Revenue growth (TTM) 20.30% 13.71% 18.03%
EPS growth (last fiscal year) 120.00% 37.00% 24.80%
Revenue growth, 5-year CAGR 31.31% 18.76% 9.73%
Net income growth, 5-year CAGR 36.73% 0.00% 0.00%

Health

Metric IA TATT Aerospace & Defense median
Debt to equity 0.70 0.06 0.20
Current ratio 2.97 4.97 2.85
Net debt to EBITDA 0.90 (1.65) 1.29

Dividend

Metric IA TATT Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric IA TATT Aerospace & Defense median
Market cap 324.34m 466.76m 1.78b

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