Red Cat Holdings, Inc. (RCAT) vs TAT Technologies Ltd. (TATT)

Red Cat Holdings, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. Red Cat Holdings, Inc. is the larger, with a market value of $520.0M against $466.8M — 1.1× the size. Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; TAT Technologies Ltd. trades at 19.7×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 836.2% against 13.7%. TAT Technologies Ltd. has the higher net margin (12.2% vs −136.3%) and the higher return on invested capital (9.16% vs −45.8%). Across the 18 metrics below, TAT Technologies Ltd. leads on 12 and Red Cat Holdings, Inc. on 6.

Valuation

Metric RCAT TATT Aerospace & Defense median
P/E n/m 19.67 28.48
P/S 6.58 2.39 2.95
P/B 1.00 2.38 2.68
Price to free cash flow n/m 250.83 31.70
EV/EBITDA n/m 15.20 16.85
EV/Sales 2.16 2.17 2.74
Earnings yield (23.55%) 5.08% 0.89%
Free cash flow yield (33.49%) 0.40% 0.00%

Profitability

Metric RCAT TATT Aerospace & Defense median
Gross margin 9.75% 26.64% 26.41%
Operating margin (150.15%) 11.52% 3.69%
Net margin (136.27%) 12.17% 2.74%
Free cash flow margin (220.44%) 1.33% 0.00%
Return on equity (34.40%) 12.99% 4.44%
Return on assets (30.05%) 9.97% 1.90%
Return on invested capital (45.82%) 9.16% 0.26%

Growth

Metric RCAT TATT Aerospace & Defense median
Revenue growth (TTM) 836.18% 13.71% 18.03%
EPS growth (last fiscal year) (28.95%) 37.00% 24.80%
Revenue growth, 5-year CAGR 52.12% 18.76% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RCAT TATT Aerospace & Defense median
Debt to equity 0.00 0.06 0.20
Current ratio 14.86 4.97 2.85
Net debt to EBITDA 2.60 (1.65) 1.29

Dividend

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

Size

Metric RCAT TATT Aerospace & Defense median
Market cap 519.99m 466.76m 1.78b

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