ITT (NYSE: ITT) and Jason Industries (NASDAQ:JASN) are both multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Dividends

ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.3%. Jason Industries does not pay a dividend. ITT pays out 21.7% of its earnings in the form of a dividend. ITT has increased its dividend for 4 consecutive years.

Volatility & Risk

ITT has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Jason Industries has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ITT and Jason Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ITT 0 1 7 0 2.88
Jason Industries 0 0 1 0 3.00

ITT currently has a consensus price target of $46.33, suggesting a potential upside of 16.71%. Jason Industries has a consensus price target of $3.25, suggesting a potential upside of 173.11%. Given Jason Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Jason Industries is more favorable than ITT.

Profitability

This table compares ITT and Jason Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ITT 8.64% 14.17% 5.70%
Jason Industries -9.80% -46.40% -0.63%

Institutional and Insider Ownership

93.1% of ITT shares are owned by institutional investors. Comparatively, 37.9% of Jason Industries shares are owned by institutional investors. 1.2% of ITT shares are owned by insiders. Comparatively, 20.0% of Jason Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares ITT and Jason Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ITT $2.43 billion 1.44 $360.20 million $2.35 16.89
Jason Industries $676.53 million 0.05 $68.19 million ($3.04) -0.39

ITT has higher revenue and earnings than Jason Industries. Jason Industries is trading at a lower price-to-earnings ratio than ITT, indicating that it is currently the more affordable of the two stocks.

Summary

ITT beats Jason Industries on 12 of the 16 factors compared between the two stocks.

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.

Jason Industries Company Profile

Jason Industries is the parent company to a global family of manufacturing leaders within the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Ill.), Janesville Acoustics (Southfield, Mich.), Metalex (Libertyville, Ill.), Milsco (Milwaukee, Wis.), Osborn (Richmond, Indiana and Burgwald, Germany) and Sealeze (Richmond, Va.). All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength. Headquartered in Milwaukee, Wis., Jason employs more than 4,000 individuals in 15 countries.

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