Critical Review: Global Power Equipment Group (GLPW) versus ITT (ITT)
Global Power Equipment Group (OTCMKTS: GLPW) and ITT (NYSE:ITT) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
ITT pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Global Power Equipment Group 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 4 consecutive years.
Global Power Equipment Group has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500. Comparatively, ITT has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Global Power Equipment Group and ITT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Power Equipment Group||0||0||0||0||N/A|
ITT has a consensus target price of $50.86, indicating a potential downside of 4.21%. Given ITT’s higher probable upside, analysts clearly believe ITT is more favorable than Global Power Equipment Group.
Earnings & Valuation
This table compares Global Power Equipment Group and ITT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Power Equipment Group||$418.59 million||0.15||-$43.61 million||($2.52)||-1.38|
|ITT||$2.41 billion||1.94||$186.10 million||$2.33||22.79|
ITT has higher revenue and earnings than Global Power Equipment Group. Global Power Equipment Group is trading at a lower price-to-earnings ratio than ITT, indicating that it is currently the more affordable of the two stocks.
This table compares Global Power Equipment Group and ITT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Power Equipment Group||N/A||N/A||N/A|
Insider and Institutional Ownership
28.2% of Global Power Equipment Group shares are owned by institutional investors. Comparatively, 92.5% of ITT shares are owned by institutional investors. 1.9% of Global Power Equipment Group 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 company will outperform the market over the long term.
ITT beats Global Power Equipment Group on 12 of the 15 factors compared between the two stocks.
About Global Power Equipment Group
Global Power Equipment Group Inc. is a design, engineering and manufacturing company providing an array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Electrical Solutions, which provides custom-configured electrical houses and generator enclosures for various industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing, and oil and gas industries. Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts, such as seals, shims and brackets. It also offers a range of services that have been managing plant asset value, including general and specialty construction, maintenance and modification, and plant management support services.
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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