Contrasting ITT (NYSE:ITT) and Barloworld (OTCMKTS:BRRAY)

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

Institutional and Insider Ownership

91.6% of ITT shares are owned by institutional investors. 0.9% of ITT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITT	10.80%	16.83%	8.61%
Barloworld	N/A	N/A	N/A

Dividends

ITT pays an annual dividend of $1.54 per share and has a dividend yield of 0.8%. Barloworld pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. ITT pays out 27.2% of its earnings in the form of a dividend. ITT has increased its dividend for 10 consecutive years. ITT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITT	$3.94 billion	4.41	$488.00 million	$5.67	34.23
Barloworld	$2.09 billion	1.41	$79.96 million	N/A	N/A

ITT has higher revenue and earnings than Barloworld.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ITT and Barloworld, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITT	0	1	10	0	2.91
Barloworld	0	0	0	0	0.00

ITT currently has a consensus price target of $234.91, indicating a potential upside of 21.04%. Given ITT’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ITT is more favorable than Barloworld.

Risk and Volatility

ITT has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Barloworld has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Summary

ITT beats Barloworld on 14 of the 15 factors compared between the two stocks.

About ITT

ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets in the United States and internationally. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains. This segment sells its products under ITT Friction Technologies, KONI, Wolverine Advanced Materials, Axtone, Novitek, and GALT. brand names. The Industrial Process segment provides industrial pumps, valves, and plant optimization and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets. This segment sells its products under Goulds Pumps, Bornemann, Engineered Valves, PRO Services, C'treat, i-ALERT, Rheinhütte Pumpen, and Habonim brand names. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized products for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy. This segment provides connector products, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consist of highly engineered actuation, flow control, energy absorption, environmental control, and composite component solutions for the aerospace, defense, and industrial markets under Cannon, VEAM, BIW Connector Systems, Aerospace Controls, Enidine, Compact Automation, Neo-Dyn Process Controls, Conoflow, and Micro-Mode brand names. The company was incorporated in 1920 and is headquartered in Stamford, Connecticut.

About Barloworld

Barloworld Limited operates as an industrial processing, distribution, and services company in Southern Africa, Australia, Russia, and Mongolia. The company operates through Equipment Southern Africa, Automotive, Ingrain, Equipment Eurasia, and Other segments. The company offers industrial equipment and services comprising of earthmoving equipment, industrial services, and power systems that enable various mining, construction, and power solutions. It also manufactures various products, which includes food, beverages, paper, pharmaceuticals, building material and adhesives, and others. In addition, the company offers starch, glucose, and other products; and salvage management and disposal services. It serves mining, construction, energy, and transportation sectors. The company was founded in 1902 and is based in Sandton, South Africa.