Head to Head Analysis: Griffon (NYSE:GFF) and ITT (NYSE:ITT)

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

Institutional & Insider Ownership

91.6% of ITT shares are owned by institutional investors. Comparatively, 73.2% of Griffon shares are owned by institutional investors. 0.5% of ITT shares are owned by company insiders. Comparatively, 10.2% of Griffon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITT	12.67%	18.96%	10.43%
Griffon	2.03%	181.66%	11.95%

Dividends

ITT pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. ITT pays out 23.3% of its earnings in the form of a dividend. Griffon pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ITT has raised its dividend for 10 consecutive years and Griffon has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for ITT and Griffon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITT	0	0	10	0	3.00
Griffon	1	1	3	2	2.86

ITT currently has a consensus price target of $207.13, indicating a potential upside of 19.22%. Griffon has a consensus price target of $95.60, indicating a potential upside of 24.05%. Given Griffon’s higher probable upside, analysts plainly believe Griffon is more favorable than ITT.

Risk and Volatility

ITT has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Griffon has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITT	$3.63 billion	4.12	$518.30 million	$6.02	28.86
Griffon	$2.52 billion	1.41	$51.11 million	$1.00	77.06

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

Summary

ITT beats Griffon on 11 of the 18 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 Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.