ITT vs IEX

For growth investors, ITT Inc.

(ITT) is the stronger pick with 8. 5% revenue growth year-over-year, versus 5. 8% for IDEX Corporation (IEX). ITT Inc. (ITT) offers the better valuation at 33. 7x trailing P/E (26. 8x forward), making it the more compelling value choice. Analysts rate ITT Inc. (ITT) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, ITT Inc.

(ITT) is the cheapest at 33. 7x versus IDEX Corporation at 33. 8x. On forward P/E, IDEX Corporation is actually cheaper at 25. 6x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ITT Inc. wins at 0. 55x versus IDEX Corporation's 4. 79x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, ITT Inc.

(ITT) delivered a total return of +112. 6%, compared to +1. 2% for IDEX Corporation (IEX). Over 10 years, the gap is even starker: ITT returned +527. 0% versus IEX's +191. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), IDEX Corporation (IEX) is the lower-risk stock at 0.

93β versus ITT Inc. 's 1. 23β — meaning ITT is approximately 33% more volatile than IEX relative to the S&P 500. On balance sheet safety, ITT Inc. (ITT) carries a lower debt/equity ratio of 23% versus 45% for IDEX Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ITT Inc.

(ITT) is pulling ahead at 8. 5% versus 5. 8% for IDEX Corporation (IEX). On earnings-per-share growth, the picture is similar: ITT Inc. grew EPS -3. 0% year-over-year, compared to -3. 5% for IDEX Corporation. Over a 3-year CAGR, ITT leads at 9. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

IDEX Corporation (IEX) is the more profitable company, earning 14.

0% net margin versus 12. 4% for ITT Inc. — meaning it keeps 14. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IEX leads at 20. 8% versus 17. 4% for ITT. At the gross margin level — before operating expenses — IEX leads at 44. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, ITT Inc. (ITT) is the more undervalued stock at a PEG of 0. 55x versus IDEX Corporation's 4. 79x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, IDEX Corporation (IEX) trades at 25. 6x forward P/E versus 26. 8x for ITT Inc. — 1. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ITT: 17. 2% to $241. 67.

All stocks in this comparison pay dividends.

IDEX Corporation (IEX) offers the highest yield at 1. 3%, versus 0. 7% for ITT Inc. (ITT).

For long-horizon retirement investors, IDEX Corporation (IEX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

93), 1. 3% yield, +191. 9% 10Y return). Both have compounded well over 10 years (IEX: +191. 9%, ITT: +527. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.