Comparing ITT (ITT) and IDEX (IEX)
IDEX (NYSE: IEX) and ITT (NYSE:ITT) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
96.2% of IDEX shares are held by institutional investors. Comparatively, 93.9% of ITT shares are held by institutional investors. 1.2% of IDEX shares are held by company insiders. Comparatively, 1.0% of ITT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
IDEX has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Valuation & Earnings
This table compares IDEX and ITT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IDEX||$2.29 billion||4.61||$337.25 million||$4.31||31.88|
|ITT||$2.59 billion||1.82||$113.50 million||$2.59||20.57|
IDEX has higher earnings, but lower revenue than ITT. ITT is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
This table compares IDEX and ITT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
IDEX pays an annual dividend of $1.72 per share and has a dividend yield of 1.3%. ITT pays an annual dividend of $0.54 per share and has a dividend yield of 1.0%. IDEX pays out 39.9% of its earnings in the form of a dividend. ITT pays out 20.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDEX has raised its dividend for 8 consecutive years and ITT has raised its dividend for 5 consecutive years. IDEX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for IDEX and ITT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IDEX presently has a consensus target price of $135.50, suggesting a potential downside of 1.39%. ITT has a consensus target price of $55.50, suggesting a potential upside of 4.17%. Given ITT’s stronger consensus rating and higher probable upside, analysts plainly believe ITT is more favorable than IDEX.
IDEX beats ITT on 11 of the 17 factors compared between the two stocks.
IDEX Company Profile
IDEX Corporation, through its subsidiaries, provides various pumps, valves, flow meters, other fluidics systems and components, and engineered products worldwide. Its Fluid & Metering Technologies segment designs, produces, and distributes positive displacement pumps, flow meters, injectors, other fluid-handling pump modules and systems, and specialty valve products, as well as offers flow monitoring and other services for food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The company's Health & Science Technologies segment offers precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction, and drying systems for use in beverage, food processing, pharmaceutical, and cosmetics; pneumatic components and sealing solutions, such as pumping solutions for analytical instrumentation, clinical diagnostics, and drug discovery; sealing components; biocompatible medical devices and implantables; and air compressors for medical, dental, and industrial applications. It also provides optical components and coatings for scientific research, defense, biotechnology, aerospace, telecommunications, and electronics manufacturing applications; laboratory and commercial equipment for the production of micro and nano scale materials; precision photonic solutions for life sciences, research, and defense markets; and precision gear and peristaltic pump technologies. The company's Fire & Safety/Diversified Products segment offers firefighting pumps and controls, apparatus valves, monitors, nozzles, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants, as well as paints for use in retail and commercial businesses. The company was founded in 1987 and is based in Lake Forest, Illinois.
ITT Company Profile
ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The company operates in three segments: Industrial Process, Motion Technologies, and Connect & Control Technologies. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization systems; and centrifugal pumps, vertical centrifugal pumps, twin screw and positive displacement pumps, and water systems, as well as aftermarket solutions, such as repairs and upgrades services. It serves various customers in industries, such as chemical, oil and gas, mining, and other industrial process markets. The Motion Technologies segment manufactures braking pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, light- and heavy-duty commercial and military vehicles, buses, and rail. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized control components for critical applications supporting various markets, including aerospace, defense, industrial, transportation, medical, and oil and gas. The connector product portfolio includes electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consist of fuel and water pumps, valves, electro-mechanical rotary and linear actuators, and pressure, temperature, limit, and flow switches for various aircraft systems. ITT Inc. was founded in 1920 and is headquartered in White Plains, New York.
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