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 $418.7M against $338.1M — 1.2× the size. Innovative Solutions and Support, Inc. trades at the lower P/E: 18.1× against 20.4×. Innovative Solutions and Support, Inc. grew revenue faster over the last twelve months: 20.3% against 12.1%. Innovative Solutions and Support, Inc. has the higher net margin (20.5% vs 11.3%) and the higher return on invested capital (13.2% vs 8.08%). 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 18.08 20.40 31.81
P/S 3.71 2.28 3.55
P/B 4.48 2.26 2.59
Price to free cash flow 24.21 58.80 31.99
EV/EBITDA 13.06 15.89 18.08
EV/Sales 4.18 2.05 3.37
Earnings yield 5.53% 4.90% 1.38%
Free cash flow yield 4.13% 1.70% 0.21%

Profitability

Metric IA TATT Aerospace & Defense median
Gross margin 54.94% 24.98% 25.48%
Operating margin 27.37% 10.07% 4.54%
Net margin 20.50% 11.26% 2.22%
Free cash flow margin 15.34% 4.28% 1.43%
Return on equity 28.50% 11.86% 6.43%
Return on assets 15.93% 9.14% 2.70%
Return on invested capital 13.19% 8.08% 1.56%

Growth

Metric IA TATT Aerospace & Defense median
Revenue growth (TTM) 20.30% 12.06% 18.43%
EPS growth (last fiscal year) 120.00% 37.00% 24.27%
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 0.24
Current ratio 2.97 4.83 2.72
Net debt to EBITDA 0.90 (1.65) 1.12

Dividend

Metric IA TATT Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric IA TATT Aerospace & Defense median
Market cap 338.12m 418.67m 2.19b

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