Analyzing JBT Marel (NYSE:JBTM) & ITT (NYSE:ITT)

ITT (NYSE:ITT) and JBT Marel (NYSE:JBTM) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITT	8.07%	15.47%	7.25%
JBT Marel	5.00%	9.00%	4.97%

Risk & Volatility

ITT has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, JBT Marel has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

91.6% of ITT shares are held by institutional investors. Comparatively, 98.9% of JBT Marel shares are held by institutional investors. 0.9% of ITT shares are held by insiders. Comparatively, 0.6% of JBT Marel shares are held by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ITT and JBT Marel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITT	0	1	8	0	2.89
JBT Marel	0	3	4	0	2.57

ITT currently has a consensus price target of $258.78, indicating a potential upside of 20.64%. JBT Marel has a consensus price target of $157.60, indicating a potential upside of 24.92%. Given JBT Marel’s higher probable upside, analysts clearly believe JBT Marel is more favorable than ITT.

Valuation and Earnings

This table compares ITT and JBT Marel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITT	$3.94 billion	4.86	$488.00 million	$4.86	44.14
JBT Marel	$3.80 billion	1.70	-$50.50 million	$3.75	33.64

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

Dividends

ITT pays an annual dividend of $1.54 per share and has a dividend yield of 0.7%. JBT Marel pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. ITT pays out 31.7% of its earnings in the form of a dividend. JBT Marel pays out 10.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 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.

Summary

ITT beats JBT Marel on 14 of the 17 factors compared between the two stocks.

About ITT

ITT Inc. is a global manufacturer of engineered components and technology serving industrial, transportation, aerospace and defense, and energy markets. Its products include pumps and valves, brake pads and shock absorbers, and specialized connectors and control components. The company operates through three main businesses: Motion Technologies, Industrial Process, and Connect & Control Technologies. These businesses provide products and services used in applications ranging from automotive braking systems and industrial fluid handling to aerospace equipment and energy infrastructure.

About JBT Marel

JBT Marel Corporation provides equipment, automation, software and services for food and beverage processing. Its solutions help producers handle, prepare, process, package and transport products across the production chain. The company serves customers in sectors including meat, poultry, seafood, fruit and vegetables, prepared foods, and beverages. Its offerings include processing and packaging systems, filling and sterilization technologies, automated production lines, and aftermarket support.