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

Virgin Galactic Holdings, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. TAT Technologies Ltd. is the larger, with a market value of $466.8M against $360.8M — 1.3× the size. Virgin Galactic Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; TAT Technologies Ltd. trades at 19.7×. TAT Technologies Ltd. grew revenue faster over the last twelve months: 13.7% against −38.9%. TAT Technologies Ltd. has the higher net margin (12.2% vs −23,867.4%) and the higher return on invested capital (9.16% 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 19.67 28.48
P/S 253.95 2.39 2.95
P/B 0.67 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 189.32 2.17 2.74
Earnings yield (142.02%) 5.08% 0.89%
Free cash flow yield (146.61%) 0.40% 0.00%

Profitability

Metric SPCE TATT Aerospace & Defense median
Gross margin 100.00% 26.64% 26.41%
Operating margin (24,804.53%) 11.52% 3.69%
Net margin (23,867.44%) 12.17% 2.74%
Free cash flow margin (37,231.31%) 1.33% 0.00%
Return on equity (75.13%) 12.99% 4.44%
Return on assets (28.89%) 9.97% 1.90%
Return on invested capital (48.91%) 9.16% 0.26%

Growth

Metric SPCE TATT Aerospace & Defense median
Revenue growth (TTM) (38.87%) 13.71% 18.03%
EPS growth (last fiscal year) 60.84% 37.00% 24.80%
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 0.20
Current ratio 1.62 4.97 2.85
Net debt to EBITDA 0.05 (1.65) 1.29

Dividend

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

Size

Metric SPCE TATT Aerospace & Defense median
Market cap 360.80m 466.76m 1.78b

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