ITT vs PP Which Is More Attractive?

ITT stocks and PP (Penny Stock) stocks are two distinct categories within the stock market. ITT stocks are typically larger, more established companies with higher market capitalizations, while PP stocks are smaller, riskier investments with lower trading volumes. Investors often debate the merits of investing in ITT versus PP stocks, weighing factors such as potential returns, volatility, and liquidity. Understanding the differences between these two types of stocks is essential for making informed investment decisions.

ITT or PP?

When comparing ITT and PP, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ITT and PP.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ITT has a dividend yield of 0.83%, while PP has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ITT reports a 5-year dividend growth of 16.70% year and a payout ratio of 21.25%. On the other hand, PP reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ITT P/E ratio at 26.05 and PP's P/E ratio at 4.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ITT P/B ratio is 4.58 while PP's P/B ratio is 0.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ITT has seen a 5-year revenue growth of 0.27%, while PP's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ITT's ROE at 18.52% and PP's ROE at 4.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $151.83 for ITT and Rp396.00 for PP. Over the past year, ITT's prices ranged from $111.96 to $161.13, with a yearly change of 43.92%. PP's prices fluctuated between Rp272.00 and Rp625.00, with a yearly change of 129.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.