Virgin Galactic Holdings, Inc. (SPCE) vs TAT Technologies Ltd. (TATT)

Virgin Galactic Holdings, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. Virgin Galactic Holdings, Inc. and TAT Technologies Ltd. are of similar size ($492.7M and $486.0M). Virgin Galactic Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; TAT Technologies Ltd. trades at 23.3×. TAT Technologies Ltd. grew revenue faster over the last twelve months: 12.1% against −38.9%. TAT Technologies Ltd. has the higher net margin (11.3% vs −23,867.4%) and the higher return on invested capital (8.08% vs −48.9%). Across the 18 metrics below, TAT Technologies Ltd. leads on 14 and Virgin Galactic Holdings, Inc. on 4.

Valuation

Metric SPCE TATT Aerospace & Defense median
P/E n/m 23.34 33.00
P/S 340.38 2.61 3.63
P/B 0.89 2.58 3.24
Price to free cash flow n/m 67.27 34.01
EV/EBITDA n/m 18.44 18.69
EV/Sales 275.75 2.38 3.94
Earnings yield (105.96%) 4.29% 1.31%
Free cash flow yield (109.38%) 1.49% 0.00%

Profitability

Metric SPCE TATT Aerospace & Defense median
Gross margin 100.00% 24.98% 25.48%
Operating margin (24,804.53%) 10.07% 4.54%
Net margin (23,867.44%) 11.26% 2.22%
Free cash flow margin (37,231.31%) 4.28% 0.00%
Return on equity (75.13%) 11.86% 6.43%
Return on assets (28.89%) 9.14% 2.70%
Return on invested capital (48.91%) 8.08% 1.56%

Growth

Metric SPCE TATT Aerospace & Defense median
Revenue growth (TTM) (38.87%) 12.06% 18.43%
EPS growth (last fiscal year) 60.84% 37.00% —
Revenue growth, 5-year CAGR 45.35% 18.76% 9.62%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SPCE TATT Aerospace & Defense median
Debt to equity 0.55 0.06 0.24
Current ratio 1.62 4.83 2.72
Net debt to EBITDA 0.05 (1.65) 1.12

Dividend

Metric SPCE TATT Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric SPCE TATT Aerospace & Defense median
Market cap 492.69m 486.00m 2.52b

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