Analyzing ITT (ITT) and Power Solutions International (PSIX)
Power Solutions International (OTCMKTS: PSIX) and ITT (NYSE:ITT) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Power Solutions International does not pay a dividend. ITT pays out 22.4% of its earnings in the form of a dividend. Power Solutions International has increased its dividend for 4 consecutive years.
This table compares Power Solutions International and ITT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Power Solutions International||N/A||N/A||N/A|
Valuation and Earnings
This table compares Power Solutions International and ITT’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Power Solutions International||$389.45 million||0.26||$14.27 million||N/A||N/A|
|ITT||$2.41 billion||1.94||$186.10 million||$2.28||23.27|
ITT has higher revenue and earnings than Power Solutions International.
Risk & Volatility
Power Solutions International has a beta of 2.77, suggesting that its stock price is 177% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Power Solutions International and ITT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Power Solutions International||0||3||1||0||2.25|
Power Solutions International currently has a consensus price target of $13.50, suggesting a potential upside of 80.00%. ITT has a consensus price target of $50.86, suggesting a potential downside of 4.15%. Given Power Solutions International’s higher possible upside, equities analysts plainly believe Power Solutions International is more favorable than ITT.
Institutional and Insider Ownership
5.8% of Power Solutions International shares are held by institutional investors. Comparatively, 92.5% of ITT shares are held by institutional investors. 56.5% of Power Solutions International shares are held by insiders. Comparatively, 1.2% of ITT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
ITT beats Power Solutions International on 10 of the 15 factors compared between the two stocks.
Power Solutions International Company Profile
Power Solutions International, Inc. is a producer and distributor of a range of low-emission power systems that run on non-diesel fuels, such as natural gas, propane and gasoline. The Company’s industrial power systems are used by original equipment manufacturers (OEMs) in a range of industries with a diversified set of applications, including stationary electricity generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment, aircraft ground support equipment, construction and irrigation equipment, and other industrial equipment. The Company provides alternative fuel power systems for OEMs of off-highway industrial equipment and on-road medium trucks and busses. In addition to its emission-certified power systems, the Company produces and distributes non-emission-certified power systems for industrial OEMs for particular applications in markets without emission standards.
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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