Sturm, Ruger & Company, Inc. (RGR) vs TAT Technologies Ltd. (TATT)

Sturm, Ruger & Company, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. Sturm, Ruger & Company, Inc. is the larger, with a market value of $686.1M against $418.7M — 1.6× the size. TAT Technologies Ltd. trades at the lower P/E: 20.4× against 56.3×. TAT Technologies Ltd. grew revenue faster over the last twelve months: 12.1% against 7.64%. TAT Technologies Ltd. has the higher net margin (11.3% vs 2.11%) and the higher return on invested capital (8.08% vs 2.04%). Across the 21 metrics below, TAT Technologies Ltd. leads on 14 and Sturm, Ruger & Company, Inc. on 7.

Valuation

Metric RGR TATT Aerospace & Defense median
P/E 56.34 20.40 31.81
P/S 1.20 2.28 3.55
P/B 2.39 2.26 2.59
Price to free cash flow 21.41 58.80 31.99
EV/EBITDA 19.32 15.89 18.08
EV/Sales 1.00 2.05 3.37
Earnings yield 1.78% 4.90% 1.38%
Free cash flow yield 4.67% 1.70% 0.21%

Profitability

Metric RGR TATT Aerospace & Defense median
Gross margin 18.70% 24.98% 25.48%
Operating margin 0.97% 10.07% 4.54%
Net margin 2.11% 11.26% 2.22%
Free cash flow margin 5.60% 4.28% 1.43%
Return on equity 4.20% 11.86% 6.43%
Return on assets 3.41% 9.14% 2.70%
Return on invested capital 2.04% 8.08% 1.56%

Growth

Metric RGR TATT Aerospace & Defense median
Revenue growth (TTM) 7.64% 12.06% 18.43%
EPS growth (last fiscal year) (115.25%) 37.00% 24.27%
Revenue growth, 5-year CAGR (0.82%) 18.76% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RGR TATT Aerospace & Defense median
Debt to equity 0.00 0.06 0.24
Current ratio 3.35 4.83 2.72
Net debt to EBITDA (8.75) (1.65) 1.12

Dividend

Metric RGR TATT Aerospace & Defense median
Dividend yield 1.01% — 0.90%
Payout ratio 0.59 — 0.32

Size

Metric RGR TATT Aerospace & Defense median
Market cap 686.11m 418.67m 2.19b

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