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 $628.5M against $486.0M — 1.3× the size. TAT Technologies Ltd. trades at the lower P/E: 23.3× against 26.4×. 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 26.39 23.34 33.00
P/S 1.16 2.61 3.63
P/B 1.71 2.58 3.24
Price to free cash flow 7.77 67.27 34.01
EV/EBITDA 10.24 18.44 18.69
EV/Sales 1.24 2.38 3.94
Earnings yield 3.79% 4.29% 1.31%
Free cash flow yield 12.86% 1.49% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR (13.13%) 18.76% 9.62%
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 3.37% — 1.04%
Payout ratio 0.53 0.00 0.00

Size

Metric SWBI TATT Aerospace & Defense median
Market cap 628.47m 486.00m 2.52b

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