Critical Analysis: ITT (ITT) & Power Solutions International (PSIX)
ITT (NYSE: ITT) and Power Solutions International (OTCMKTS:PSIX) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Valuation & Earnings
This table compares ITT and Power Solutions International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ITT||$2.41 billion||1.91||$186.10 million||$2.33||22.36|
|Power Solutions International||$389.45 million||0.34||$14.27 million||N/A||N/A|
ITT has higher revenue and earnings than Power Solutions International.
Risk & Volatility
ITT has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500.
ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Power Solutions International does not pay a dividend. ITT pays out 21.9% of its earnings in the form of a dividend. ITT has increased its dividend for 4 consecutive years.
This is a summary of current ratings for ITT and Power Solutions International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Power Solutions International||0||3||1||0||2.25|
ITT currently has a consensus price target of $50.38, suggesting a potential downside of 3.29%. Power Solutions International has a consensus price target of $13.50, suggesting a potential upside of 38.46%. Given Power Solutions International’s higher possible upside, analysts clearly believe Power Solutions International is more favorable than ITT.
Insider and Institutional Ownership
93.4% of ITT shares are owned by institutional investors. Comparatively, 5.9% of Power Solutions International shares are owned by institutional investors. 1.2% of ITT shares are owned by insiders. Comparatively, 56.5% of Power Solutions International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares ITT and Power Solutions International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Power Solutions International||N/A||N/A||N/A|
ITT beats Power Solutions International on 11 of the 15 factors compared between the two stocks.
ITT Company Profile
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.
Power Solutions International Company Profile
Power Solutions International, Inc. is a producer and distributor of a range of low-emission power systems that run on non-diesel fuels, such as natural gas, propane and gasoline. The Company’s industrial power systems are used by original equipment manufacturers (OEMs) in a range of industries with a diversified set of applications, including stationary electricity generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment, aircraft ground support equipment, construction and irrigation equipment, and other industrial equipment. The Company provides alternative fuel power systems for OEMs of off-highway industrial equipment and on-road medium trucks and busses. In addition to its emission-certified power systems, the Company produces and distributes non-emission-certified power systems for industrial OEMs for particular applications in markets without emission standards.
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