Analyzing Citic (OTCMKTS:CTPCY) and ITT (NYSE:ITT)

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

Insider and Institutional Ownership

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

Dividends

ITT pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. Citic pays an annual dividend of $0.24 per share and has a dividend yield of 3.2%. ITT pays out 23.3% of its earnings in the form of a dividend. ITT has raised its dividend for 10 consecutive years.

Volatility and Risk

ITT has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Citic has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares ITT and Citic’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%
Citic	N/A	N/A	N/A

Analyst Recommendations

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

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

ITT presently has a consensus price target of $201.25, indicating a potential upside of 12.31%. Given ITT’s stronger consensus rating and higher probable upside, research analysts plainly believe ITT is more favorable than Citic.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITT	$3.81 billion	3.67	$518.30 million	$6.02	29.77
Citic	$104.73 billion	0.42	$8.10 billion	N/A	N/A

Citic has higher revenue and earnings than ITT.

Summary

ITT beats Citic on 11 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 Citic

CITIC Limited operates in financial services, advanced intelligent manufacturing, advanced materials, consumption, urbanization, resources and energy, and engineering contracting businesses worldwide. The Comprehensive Financial Services segment provides banking, investment research, securities brokerage, trust, insurance and reinsurance, investment banking, wealth and asset management, financial markets, equity investment, financing, and other integrated financial services. The Advanced Intelligent Manufacturing segment offers automotive aluminium wheels and lightweight cast components, and chassis and body systems; mining and heavy machinery, specialized robots and intelligent equipment, new energy and cement equipment, and special materials; operates industrial Internet platform; and provides engineering, procurement, and construction services. The Advanced Materials segment offers specialty steel products; chloride; explores, develops, and produces oil and magnetite; invests in coal and bauxite mining, imports and exports commodities, electrolytic aluminum, and alumina smelting; and invests in and manages power plants. The New Consumption segment provides telecommunications technology services; leases and sells satellite transponders; distributes motor and consumer products; and publishes books and digital books, as well as operates in bookstore retailing business. This segment also deals and distributes with supporting services for automotive brands; and develops agricultural science and technology, as well as engages in the brand development, manufacturing, commodity trading, agency distribution, logistics, and retail in the food and fast-moving consumer goods, healthcare, and electrical products industries. The company was formerly known as CITIC Pacific Limited and changed its name to CITIC Limited in August 2014. CITIC Limited was incorporated in 1985 and is based in Central, Hong Kong. CITIC Limited operates as a subsidiary of CITIC Group Corporation.