Smith & Wesson Brands, Inc. (SWBI) vs TAT Technologies Ltd. (TATT)

Smith & Wesson Brands, Inc. and TAT Technologies Ltd. are both Aerospace & Defense companies. Smith & Wesson Brands, Inc. is the larger, with a market value of $634.9M against $418.7M — 1.5× the size. TAT Technologies Ltd. trades at the lower P/E: 20.4× against 26.2×. Smith & Wesson Brands, Inc. grew revenue faster over the last twelve months: 17.0% against 12.1%. TAT Technologies Ltd. has the higher net margin (11.3% vs 4.44%) and the higher return on invested capital (8.08% vs 5.42%). Across the 22 metrics below, TAT Technologies Ltd. leads on 13 and Smith & Wesson Brands, Inc. on 9.

Valuation

Metric SWBI TATT Aerospace & Defense median
P/E 26.19 20.40 31.81
P/S 1.15 2.28 3.55
P/B 1.69 2.26 2.59
Price to free cash flow 7.71 58.80 31.99
EV/EBITDA 11.26 15.89 18.08
EV/Sales 1.37 2.05 3.37
Earnings yield 3.82% 4.90% 1.38%
Free cash flow yield 12.96% 1.70% 0.21%

Profitability

Metric SWBI TATT Aerospace & Defense median
Gross margin 27.44% 24.98% 25.48%
Operating margin 6.60% 10.07% 4.54%
Net margin 4.44% 11.26% 2.22%
Free cash flow margin 14.92% 4.28% 1.43%
Return on equity 6.63% 11.86% 6.43%
Return on assets 4.54% 9.14% 2.70%
Return on invested capital 5.42% 8.08% 1.56%

Growth

Metric SWBI TATT Aerospace & Defense median
Revenue growth (TTM) 16.96% 12.06% 18.43%
EPS growth (last fiscal year) 36.67% 37.00% 24.27%
Revenue growth, 5-year CAGR (13.13%) 18.76% 9.73%
Net income growth, 5-year CAGR (40.70%) 0.00% 0.00%

Health

Metric SWBI TATT Aerospace & Defense median
Debt to equity 0.19 0.06 0.24
Current ratio 3.62 4.83 2.72
Net debt to EBITDA 0.30 (1.65) 1.12

Dividend

Metric SWBI TATT Aerospace & Defense median
Dividend yield 3.68% — 0.90%
Payout ratio 0.96 — 0.32

Size

Metric SWBI TATT Aerospace & Defense median
Market cap 634.93m 418.67m 2.19b

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