Analyzing United Technologies (UTX) and TAT Technologies (TATT)

United Technologies (NYSE: UTX) and TAT Technologies (NASDAQ:TATT) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Dividends

United Technologies pays an annual dividend of $2.80 per share and has a dividend yield of 2.2%. TAT Technologies does not pay a dividend. United Technologies pays out 42.1% of its earnings in the form of a dividend. United Technologies has raised its dividend for 6 consecutive years.

Earnings & Valuation

This table compares United Technologies and TAT Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Technologies $59.84 billion 1.67 $4.55 billion $6.65 18.83
TAT Technologies $106.53 million 0.71 $2.39 million N/A N/A

United Technologies has higher revenue and earnings than TAT Technologies.

Insider & Institutional Ownership

81.5% of United Technologies shares are owned by institutional investors. Comparatively, 2.7% of TAT Technologies shares are owned by institutional investors. 0.2% of United Technologies shares are owned by insiders. Comparatively, 8.8% of TAT Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares United Technologies and TAT Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Technologies 7.28% 17.67% 5.74%
TAT Technologies 2.25% 2.93% 2.32%

Analyst Recommendations

This is a summary of current recommendations and price targets for United Technologies and TAT Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Technologies 0 5 12 0 2.71
TAT Technologies 0 0 0 0 N/A

United Technologies presently has a consensus target price of $138.25, suggesting a potential upside of 10.43%. Given United Technologies’ higher probable upside, research analysts clearly believe United Technologies is more favorable than TAT Technologies.

Volatility and Risk

United Technologies has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, TAT Technologies has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Summary

United Technologies beats TAT Technologies on 12 of the 15 factors compared between the two stocks.

About United Technologies

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services. The company's UTC Climate, Controls & Security segment provides heating, ventilating, air conditioning, refrigeration, fire, security, and building automation products, solutions, and services for residential, commercial, industrial, and transportation applications. This segment also offers building services, including audit, design, installation, system integration, repair, maintenance, monitoring, and inspection services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services. The company's UTC Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data and aircraft sensing systems; engine control, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; engine nacelle systems; aircraft lighting and seating, and cargo systems; actuation and landing systems; space products and subsystems; and aftermarket services. United Technologies Corporation offers its services through manufacturers' representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers. United Technologies Corporation was founded in 1934 and is headquartered in Farmington, Connecticut.

About TAT Technologies

TAT Technologies Ltd., together with its subsidiaries, provides various solutions and services to the commercial and military aerospace, and ground defense industries worldwide. 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 also provides maintenance, repair, and overhaul (MRO) services for heat transfer components; and aviation components, such as APUs, landing gears, and other aircraft components, as well as manufactures heat transfer solutions on original equipment manufacturing basis. In addition, it engages in the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps, and other components. 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 1985 and is headquartered in Gedera, Israel.

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