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 ($418.7M and $391.1M). Virgin Galactic Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; TAT Technologies Ltd. trades at 20.4×. 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 20.40 31.81
P/S 259.29 2.28 3.55
P/B 0.68 2.26 2.59
Price to free cash flow n/m 58.80 31.99
EV/EBITDA n/m 15.89 18.08
EV/Sales 194.66 2.05 3.37
Earnings yield (139.09%) 4.90% 1.38%
Free cash flow yield (143.59%) 1.70% 0.21%

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% 1.43%
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% 24.27%
Revenue growth, 5-year CAGR 45.35% 18.76% 9.73%
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 — — 0.90%
Payout ratio — — 0.32

Size

Metric SPCE TATT Aerospace & Defense median
Market cap 391.12m 418.67m 2.19b

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