Critical Contrast: ITT (NYSE:ITT) versus First Pacific (OTCMKTS:FPAFY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Pacific	N/A	N/A	N/A
ITT	12.39%	17.74%	10.12%

Institutional & Insider Ownership

0.0% of First Pacific shares are owned by institutional investors. Comparatively, 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for First Pacific and ITT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Pacific	0	0	0	0	0.00
ITT	0	0	9	0	3.00

ITT has a consensus target price of $216.11, indicating a potential upside of 7.04%. Given ITT’s stronger consensus rating and higher possible upside, analysts plainly believe ITT is more favorable than First Pacific.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Pacific	$10.06 billion	0.36	$600.30 million	N/A	N/A
ITT	$3.94 billion	4.41	$488.00 million	$6.11	33.04

First Pacific has higher revenue and earnings than ITT.

Dividends

First Pacific pays an annual dividend of $0.14 per share and has a dividend yield of 3.3%. ITT pays an annual dividend of $1.54 per share and has a dividend yield of 0.8%. ITT pays out 25.2% of its earnings in the form of a dividend. ITT has raised its dividend for 10 consecutive years.

Volatility & Risk

First Pacific has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, ITT has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Summary

ITT beats First Pacific on 11 of the 15 factors compared between the two stocks.

About First Pacific

First Pacific Company Limited, an investment holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Singapore, the Middle East, Africa, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, and fixed line and cellular networks. It also manufactures and distributes a range of food products, including noodles, dairy products, snack foods, food seasonings, nutrition and special foods, beverages, wheat flour, and pasta; breeds seeds; cultivates oil palm, rubber, sugar cane, and other crops; and offers cooking oils, margarines, and shortenings. In addition, the company explores for, mines, and produces gold, copper, and silver; and produces sugar and bioethanol. Further, it is involved in the operation of gas-fired power plant; provision of water distribution, sewerage, and sanitation services; and operation of toll roads and rails, as well as distribution of electricity. First Pacific Company Limited was founded in 1981 and is headquartered in Central, Hong Kong.

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.