Critical Review: TAT Technologies (NASDAQ:TATT) versus Intuitive Machines (NASDAQ:LUNR)
by Sarita Garza · The Markets DailyIntuitive Machines (NASDAQ:LUNR – Get Free Report) and TAT Technologies (NASDAQ:TATT – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Profitability
This table compares Intuitive Machines and TAT Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Intuitive Machines | -26.64% | N/A | -5.00% |
| TAT Technologies | 11.26% | 9.84% | 7.58% |
Analyst Recommendations
This is a summary of recent ratings for Intuitive Machines and TAT Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intuitive Machines | 2 | 1 | 7 | 0 | 2.50 |
| TAT Technologies | 0 | 2 | 6 | 2 | 3.00 |
Intuitive Machines presently has a consensus target price of $30.50, suggesting a potential upside of 96.50%. TAT Technologies has a consensus target price of $57.86, suggesting a potential upside of 62.01%. Given Intuitive Machines’ higher possible upside, analysts plainly believe Intuitive Machines is more favorable than TAT Technologies.
Insider & Institutional Ownership
72.2% of Intuitive Machines shares are held by institutional investors. Comparatively, 15.1% of TAT Technologies shares are held by institutional investors. 54.1% of Intuitive Machines shares are held by company insiders. Comparatively, 8.7% of TAT Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Intuitive Machines has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares Intuitive Machines and TAT Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Intuitive Machines | $210.06 million | 16.92 | -$83.29 million | ($0.95) | -16.34 |
| TAT Technologies | $178.01 million | 2.61 | $16.82 million | $1.60 | 22.32 |
TAT Technologies has lower revenue, but higher earnings than Intuitive Machines. Intuitive Machines is trading at a lower price-to-earnings ratio than TAT Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
TAT Technologies beats Intuitive Machines on 8 of the 15 factors compared between the two stocks.
About Intuitive Machines
Intuitive Machines, Inc. designs, manufactures, and operates space products and services in the United States. Its space systems and space infrastructure enable scientific and human exploration and utilization of lunar resources to support sustainable human presence on the moon. The company offers lunar access services, such µNova, lunar surface rover services, fixed lunar surface services, lunar orbit delivery services, rideshare delivery services to lunar orbit, as well as content sales and marketing sponsorships; and orbital services, including satellite delivery and rideshare, satellite servicing and refueling, space station servicing, satellite repositioning, and orbital debris removal. It also provides lunar data services, comprising Lunar data network, lunar south pole and far-side coverage, lunar positioning services, data relay, and data storage/caching. In addition, the company offers propulsion systems and navigation systems; engineering services contracts; lunar mobility vehicles, such as rovers and drones; power infrastructure that includes fission surface power; and human habitation systems. It serves its products to the U.S. government, commercial, and international customers. Intuitive Machines, Inc. was founded in 2013 and is headquartered in Houston, Texas.
About TAT Technologies
TAT Technologies Ltd., together with its subsidiaries, provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally. The company operates through four segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories; Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions; MRO Services for Aviation Components; and Overhaul and Coating of Jet Engine Components. It designs, develops, and manufactures a range of heat transfer solutions, such as pre-cooler and oil/fuel hydraulic heat exchangers used in mechanical and electronic systems in commercial, military, and business aircraft; environmental control and power electronics cooling systems for use in aircraft and ground applications; and a range of other mechanical aircraft accessories and systems, such as pumps, valves, and turbine power units. The company provides MRO services for heat transfer components, as well as for manufacturing heat transfer solutions; and aviation components. In addition, it engages in the operation of a repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers, and the military; and the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, and afterburner flaps. The company was formerly known as Galagraph Ltd. and changed its name to TAT Technologies Ltd. in May 1992. TAT Technologies Ltd. was founded in 1969 and is headquartered in Netanya, Israel.