Comparing IAC (NASDAQ:IAC) and ITT (NYSE:ITT)

IAC (NASDAQ:IAC) and ITT (NYSE:ITT) are both multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

88.9% of IAC shares are owned by institutional investors. Comparatively, 91.6% of ITT shares are owned by institutional investors. 16.1% of IAC shares are owned by insiders. Comparatively, 0.5% of ITT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for IAC and ITT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IAC	1	2	10	0	2.69
ITT	0	1	10	0	2.91

IAC currently has a consensus target price of $46.73, suggesting a potential upside of 40.66%. ITT has a consensus target price of $201.25, suggesting a potential upside of 11.17%. Given IAC’s higher probable upside, research analysts clearly believe IAC is more favorable than ITT.

Risk & Volatility

IAC has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares IAC and ITT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IAC	$3.65 billion	0.65	-$539.90 million	($2.73)	-12.17
ITT	$3.81 billion	3.70	$518.30 million	$6.02	30.07

ITT has higher revenue and earnings than IAC. IAC is trading at a lower price-to-earnings ratio than ITT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IAC and ITT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IAC	-8.27%	-4.61%	-3.06%
ITT	12.67%	18.96%	10.43%

Summary

ITT beats IAC on 11 of the 13 factors compared between the two stocks.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.

About ITT

ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets in the United States and internationally. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains. This segment sells its products under ITT Friction Technologies, KONI, Wolverine Advanced Materials, Axtone, Novitek, and GALT. brand names. The Industrial Process segment provides industrial pumps, valves, and plant optimization and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets. This segment sells its products under Goulds Pumps, Bornemann, Engineered Valves, PRO Services, C'treat, i-ALERT, Rheinhütte Pumpen, and Habonim brand names. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized products for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy. This segment provides connector products, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consist of highly engineered actuation, flow control, energy absorption, environmental control, and composite component solutions for the aerospace, defense, and industrial markets under Cannon, VEAM, BIW Connector Systems, Aerospace Controls, Enidine, Compact Automation, Neo-Dyn Process Controls, Conoflow, and Micro-Mode brand names. The company was incorporated in 1920 and is headquartered in Stamford, Connecticut.