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

Risk & Volatility

ITT has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Aixtron Se has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares ITT and Aixtron Se’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ITT $2.41 billion 1.87 $186.10 million $2.28 22.38
Aixtron Se N/A N/A N/A ($0.22) -13.91

ITT has higher revenue and earnings than Aixtron Se. Aixtron Se 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 ITT and Aixtron Se’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ITT 8.29% 14.12% 5.84%
Aixtron Se -18.84% -13.14% -10.84%

Dividends

ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Aixtron Se does not pay a dividend. ITT pays out 22.4% of its earnings in the form of a dividend. Aixtron Se has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

92.4% of ITT shares are held by institutional investors. Comparatively, 0.4% of Aixtron Se shares are held by institutional investors. 1.2% of ITT shares are held by 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for ITT and Aixtron Se, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ITT 0 1 11 0 2.92
Aixtron Se 2 0 1 0 1.67

ITT currently has a consensus price target of $50.38, indicating a potential downside of 1.26%. Given ITT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ITT is more favorable than Aixtron Se.

Summary

ITT beats Aixtron Se on 12 of the 14 factors compared between the two stocks.

About ITT

ITT Corporation (ITT) is a diversified manufacturer of engineered critical components and technology solutions for industrial markets. The Company’s product and service offerings are organized in four segments: Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies. Industrial Process manufactures engineered fluid process equipment, and is a provider of plant optimization, solutions and aftermarket services and parts. Motion Technologies manufactures brake components, shock absorbers and damping technologies for the automotive, truck and trailer, public bus and rail transportation markets. Interconnect Solutions manufactures and designs a range of engineered connector solutions that makes it possible to transfer signal and power between electronic devices. Control Technologies manufactures equipment, including actuation, valves, and noise and energy absorption components for the aerospace and defense, and industrial markets.

About Aixtron Se

AIXTRON SE is a provider of deposition equipment to the semiconductor industry. The Company’s technology solutions are used by a range of customers across the world to build components for electronic and opto-electronic applications based on compound, silicon or organic semiconductor materials. Such components are used in fiber optic communication systems, wireless and mobile telephony applications, optical and electronic storage devices, computing, signaling and lighting, displays, as well as a range of other technologies. The Company’s business activities include developing, producing and installing equipment for the deposition of semiconductor and other complex materials, process engineering, consulting and training, including ongoing customer support and after-sales service. The Company supplies its customers with both production-scale material deposition systems and small scale systems for research and development (R&D) or small scale production.

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