ITT (NYSE:ITT) vs. National Presto Industries (NYSE:NPK) Financial Analysis

National Presto Industries (NYSE:NPK – Get Free Report) and ITT (NYSE:ITT – Get Free Report) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Profitability

This table compares National Presto Industries and ITT’s net margins, return on equity and return on assets.

Institutional & Insider Ownership

58.6% of National Presto Industries shares are held by institutional investors. Comparatively, 91.6% of ITT shares are held by institutional investors. 28.0% of National Presto Industries shares are held by insiders. Comparatively, 0.5% of ITT shares are held 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.

Dividends

National Presto Industries pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. ITT pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. National Presto Industries pays out 18.4% of its earnings in the form of a dividend. ITT pays out 23.3% 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 raised its dividend for 10 consecutive years. National Presto Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares National Presto Industries and ITT”s revenue, earnings per share and valuation.

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

Risk & Volatility

National Presto Industries has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, ITT has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for National Presto Industries and ITT, as provided by MarketBeat.

ITT has a consensus target price of $207.13, indicating a potential upside of 16.96%. Given ITT’s higher possible upside, analysts plainly believe ITT is more favorable than National Presto Industries.

Summary

ITT beats National Presto Industries on 13 of the 16 factors compared between the two stocks.

About National Presto Industries

(Get Free Report)

National Presto Industries, Inc. provides housewares and small appliance, defense, and safety products in North America. The company’s Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control line of skillets, griddles, woks, and multi-purpose cookers; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; vacuum sealers; rice cookers; microwave bacon cookers; egg cookers; coffeemakers and coffeemaker accessories; electric knife sharpeners; and timers under the Presto Control Master brand. This segment sells its products directly to retailers, as well as through independent distributors. Its Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical products, medium caliber cartridge cases; and metal parts; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. The company’s Safety segment patents machine learning, digital sensors, and cloud-based technology to monitor freezers and refrigerators that detects and alerts users to potential safety issues around pharmaceuticals and food. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.

About ITT

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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.