Comparing Eaton (NYSE:ETN) and Fitell (NASDAQ:FTEL)

Eaton (NYSE:ETN) and Fitell (NASDAQ:FTEL) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

83.0% of Eaton shares are owned by institutional investors. Comparatively, 0.1% of Fitell shares are owned by institutional investors. 0.3% of Eaton shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Eaton and Fitell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eaton	14.74%	24.36%	11.45%
Fitell	N/A	N/A	N/A

Earnings & Valuation

This table compares Eaton and Fitell”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eaton	$24.88 billion	5.20	$3.79 billion	$10.00	33.31
Fitell	$5.20 million	0.30	-$680,000.00	N/A	N/A

Eaton has higher revenue and earnings than Fitell.

Analyst Recommendations

This is a breakdown of current ratings for Eaton and Fitell, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eaton	0	6	16	1	2.78
Fitell	1	0	0	0	1.00

Eaton currently has a consensus target price of $401.50, suggesting a potential upside of 20.55%. Given Eaton’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Eaton is more favorable than Fitell.

Volatility and Risk

Eaton has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Fitell has a beta of 7.03, meaning that its stock price is 603% more volatile than the S&P 500.

Summary

Eaton beats Fitell on 12 of the 13 factors compared between the two stocks.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.