Analyzing Kubota (KUBTY) and ITT (ITT)

Kubota (OTCMKTS: KUBTY) and ITT (NYSE:ITT) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Kubota 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 5 consecutive years.

Risk and Volatility

Kubota has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Kubota and ITT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kubota 1 0 0 0 1.00
ITT 0 1 8 0 2.89

ITT has a consensus price target of $55.17, indicating a potential upside of 8.43%. Given ITT’s stronger consensus rating and higher possible upside, analysts clearly believe ITT is more favorable than Kubota.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kubota $3.53 billion 6.67 $316.27 million N/A N/A
ITT $2.41 billion 1.86 $186.10 million $2.33 21.84

Kubota has higher revenue and earnings than ITT.

Institutional & Insider Ownership

0.3% of Kubota shares are owned by institutional investors. Comparatively, 91.6% of ITT shares are owned by institutional investors. 0.0% of Kubota shares are owned by company insiders. Comparatively, 1.2% of ITT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Kubota and ITT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kubota N/A N/A N/A
ITT 8.29% 14.12% 5.84%

Summary

ITT beats Kubota on 11 of the 15 factors compared between the two stocks.

Kubota Company Profile

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.

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.

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