Intuitive Machines (NASDAQ:LUNR) and TAT Technologies (NASDAQ:TATT) Critical Review

TAT Technologies (NASDAQ:TATT) and Intuitive Machines (NASDAQ:LUNR) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TAT Technologies and Intuitive Machines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAT Technologies	0	2	6	2	3.00
Intuitive Machines	2	1	7	0	2.50

TAT Technologies presently has a consensus target price of $57.86, indicating a potential upside of 64.41%. Intuitive Machines has a consensus target price of $30.50, indicating a potential upside of 107.34%. Given Intuitive Machines’ higher probable upside, analysts plainly believe Intuitive Machines is more favorable than TAT Technologies.

Insider and Institutional Ownership

15.1% of TAT Technologies shares are held by institutional investors. Comparatively, 72.2% of Intuitive Machines shares are held by institutional investors. 8.7% of TAT Technologies shares are held by company insiders. Comparatively, 54.1% of Intuitive Machines 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TAT Technologies	11.26%	9.84%	7.58%
Intuitive Machines	-26.64%	N/A	-5.00%

Volatility and Risk

TAT Technologies has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Intuitive Machines has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.

Earnings & Valuation

This table compares TAT Technologies and Intuitive Machines”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAT Technologies	$178.01 million	2.57	$16.82 million	$1.60	21.99
Intuitive Machines	$210.06 million	16.03	-$83.29 million	($0.95)	-15.48

TAT Technologies has higher earnings, but lower revenue 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 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.

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.