ITT (NYSE: ITT) and Kubota (OTCMKTS:KUBTY) are both mid-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
This table compares ITT and Kubota’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
92.5% of ITT shares are owned by institutional investors. Comparatively, 0.3% of Kubota shares are owned by institutional investors. 1.2% of ITT shares are owned by company insiders. Comparatively, 0.0% of Kubota shares are owned 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.
This is a breakdown of current ratings and price targets for ITT and Kubota, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ITT currently has a consensus target price of $55.17, indicating a potential downside of 2.22%. Given ITT’s stronger consensus rating and higher possible upside, research analysts clearly believe ITT is more favorable than Kubota.
Risk and Volatility
ITT has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Kubota has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Earnings and Valuation
This table compares ITT and Kubota’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ITT||$2.41 billion||2.06||$186.10 million||$2.28||24.75|
|Kubota||$3.53 billion||7.32||$316.27 million||N/A||N/A|
Kubota has higher revenue and earnings than ITT.
ITT pays an annual dividend of $0.51 per share and has a dividend yield of 0.9%. Kubota does not pay a dividend. ITT pays out 22.4% of its earnings in the form of a dividend. ITT has increased its dividend for 5 consecutive years.
ITT beats Kubota on 11 of the 15 factors compared between the two stocks.
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.
KUBOTA Corporation is a manufacturer of a range of machinery, and other industrial and consumer products. The Company operates through three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment is engaged in the manufacture and sale of products, which include farm equipment, engines, construction machinery and electronic equipped machinery. Its Water & Environment segment engages in the manufacture and sale of pipe‐related products, such as ductile iron pipes, plastic pipes, pumps, valves and other products; environment‐related products, including environmental control plants and other products, and social infrastructure‐related products, such as industrial castings, ceramics, spiral‐welded steel pipes and other products. The Other segment is engaged in services and other businesses. The Company has operations in Japan, the United States, Germany, China, Thailand and other Southeast Asian regions.
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