Flow International Corp (NASDAQ: FLOW) and ITT (NYSE:ITT) are both industrial goods companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Flow International Corp and ITT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flow International Corp 1 2 4 0 2.43
ITT 0 1 7 0 2.88

Flow International Corp currently has a consensus target price of $39.25, indicating a potential upside of 8.13%. ITT has a consensus target price of $46.33, indicating a potential upside of 11.92%. Given ITT’s stronger consensus rating and higher possible upside, analysts plainly believe ITT is more favorable than Flow International Corp.

Dividends

ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.2%. Flow International Corp does not pay a dividend. ITT pays out 21.7% of its earnings in the form of a dividend. ITT has raised its dividend for 4 consecutive years.

Profitability

This table compares Flow International Corp and ITT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flow International Corp N/A N/A N/A
ITT 8.64% 14.17% 5.70%

Institutional and Insider Ownership

93.1% of ITT shares are held by institutional investors. 1.2% of ITT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Flow International Corp and ITT’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Flow International Corp $1.89 billion 0.81 $190.40 million N/A N/A
ITT $2.43 billion 1.50 $360.20 million $2.35 17.62

ITT has higher revenue and earnings than Flow International Corp.

Summary

ITT beats Flow International Corp on 13 of the 15 factors compared between the two stocks.

About Flow International Corp

SPX FLOW, Inc. provides various engineered solutions worldwide. The company engineers, designs, manufactures, and markets products and solutions used to process, blend, filter, dry, meter, and transport fluids with a focus on original equipment installation, including turn-key systems, modular systems, and components, as well as aftermarket components and support services. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The Food and Beverage segment offers mixing, drying, evaporation, and separation systems and components; heat exchangers, and reciprocating and centrifugal pump technologies; and turn-key systems primarily under the Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital, and Waukesha Cherry-Burrell brands. The Power and Energy segment provides pumps, valves, and related accessories primarily for customers in oil and gas, and nuclear and other conventional power industries under the APV, Bran+Luebbe, ClydeUnion Pumps, Copes-Vulcan, Dollinger Filtration, LIGHTNIN, M&J Valve, Plenty, and Vokes brands. The Industrial segment offers air dryers, filtration equipment, mixers, pumps, hydraulic technologies, and heat exchangers under the Airpel, APV, Bolting Systems, Delair, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team, and Stone brands. It primarily serves customers in chemical, air treatment, mining, pharmaceutical, marine, shipbuilding, infrastructure construction, general industrial, and water treatment industries. SPX FLOW, Inc. is headquartered in Charlotte, North Carolina.

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.

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