ITT (NYSE:ITT – Get Free Report) and Star Equity (NASDAQ:STRR – Get Free Report) 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, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Valuation and Earnings
This table compares ITT and Star Equity”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ITT | $3.81 billion | 4.10 | $518.30 million | $6.02 | 30.22 |
| Star Equity | $140.06 million | 0.27 | -$4.77 million | ($1.58) | -6.85 |
Risk and Volatility
ITT has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for ITT and Star Equity, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ITT | 0 | 0 | 10 | 0 | 3.00 |
| Star Equity | 2 | 1 | 1 | 0 | 1.75 |
ITT presently has a consensus target price of $207.13, suggesting a potential upside of 13.85%. Star Equity has a consensus target price of $13.00, suggesting a potential upside of 20.04%. Given Star Equity’s higher possible upside, analysts clearly believe Star Equity is more favorable than ITT.
Profitability
This table compares ITT and Star Equity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ITT | 12.67% | 18.96% | 10.43% |
| Star Equity | -3.22% | -2.33% | -1.57% |
Institutional and Insider Ownership
91.6% of ITT shares are held by institutional investors. Comparatively, 3.8% of Star Equity shares are held by institutional investors. 0.5% of ITT shares are held by insiders. Comparatively, 10.4% of Star Equity 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.
Summary
ITT beats Star Equity on 12 of the 14 factors compared between the two stocks.
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.
About Star Equity
Star Equity Holdings, Inc. engages in the construction business in the United States and internationally. It operates through two segments: Construction, and Investments. It manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.
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