ITT Inc. (ITT) vs Watts Water Technologies, Inc. (WTS)

ITT Inc. and Watts Water Technologies, Inc. are both Specialty Industrial Machinery companies. ITT Inc. is the larger, with a market value of $18.0B against $11.9B — 1.5× the size. Watts Water Technologies, Inc. trades at the lower P/E: 31.1× against 38.7×. ITT Inc. grew revenue faster over the last twelve months: 28.1% against 17.1%. Watts Water Technologies, Inc. has the higher net margin (14.3% vs 8.90%) and the higher return on invested capital (16.4% vs 5.35%). Both pay a dividend; ITT Inc. yields more (0.76% vs 0.64%). Across the 23 metrics below, Watts Water Technologies, Inc. leads on 16 and ITT Inc. on 7.

Valuation

Metric ITT WTS Specialty Industrial Machinery median
P/E 38.68 31.15 28.39
P/S 3.74 4.46 2.70
P/B 3.68 5.46 3.02
Price to free cash flow 34.75 34.51 23.32
EV/EBITDA 23.15 20.52 15.39
EV/Sales 4.40 4.40 2.81
Earnings yield 2.59% 3.21% 3.12%
Free cash flow yield 2.88% 2.90% 3.24%

Profitability

Metric ITT WTS Specialty Industrial Machinery median
Gross margin 34.98% 48.85% 35.90%
Operating margin 14.35% 19.13% 11.22%
Net margin 8.90% 14.34% 7.80%
Free cash flow margin 10.75% 13.05% 9.51%
Return on equity 11.43% 18.81% 10.50%
Return on assets 5.25% 13.72% 4.60%
Return on invested capital 5.35% 16.42% 5.36%

Growth

Metric ITT WTS Specialty Industrial Machinery median
Revenue growth (TTM) 28.07% 17.13% 6.45%
EPS growth (last fiscal year) (3.02%) 17.03% 4.97%
Revenue growth, 5-year CAGR 9.71% 10.08% 8.31%
Net income growth, 5-year CAGR 46.43% 24.42% 5.04%

Health

Metric ITT WTS Specialty Industrial Machinery median
Debt to equity 0.78 0.05 0.35
Current ratio 1.26 2.66 2.11
Net debt to EBITDA (1.16) (0.41) 1.32

Dividend

Metric ITT WTS Specialty Industrial Machinery median
Dividend yield 0.76% 0.64% 1.10%
Payout ratio 0.30 0.20 0.31

Size

Metric ITT WTS Specialty Industrial Machinery median
Market cap 17.97b 11.85b 1.91b

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