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

Dividends

ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Aixtron does not pay a dividend. ITT pays out 21.9% of its earnings in the form of a dividend. Aixtron has raised its dividend for 4 consecutive years.

Volatility & Risk

ITT has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Aixtron has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares ITT and Aixtron’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 -18.84% -13.14% -10.84%

Valuation & Earnings

This table compares ITT and Aixtron’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ITT $2.41 billion 1.93 $186.10 million $2.33 22.69
Aixtron N/A N/A N/A ($0.22) -30.18

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

Insider and Institutional Ownership

92.5% of ITT shares are held by institutional investors. Comparatively, 0.4% of Aixtron shares are held by institutional investors. 1.2% of ITT 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for ITT and Aixtron, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ITT 0 1 10 0 2.91
Aixtron 2 0 1 0 1.67

ITT presently has a consensus price target of $50.86, indicating a potential downside of 3.79%. Given ITT’s stronger consensus rating and higher probable upside, research analysts clearly believe ITT is more favorable than Aixtron.

Summary

ITT beats Aixtron on 12 of the 14 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.

Aixtron Company Profile

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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