WAB vs ITT

For growth investors, ITT Inc.

(ITT) is the stronger pick with 8. 5% revenue growth year-over-year, versus 7. 5% for Westinghouse Air Brake Technologies Corporation (WAB). 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 Westinghouse Air Brake Technologies Corporation (WAB) a "Buy" — based on 34 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 Westinghouse Air Brake Technologies Corporation at 38. 9x. On forward P/E, Westinghouse Air Brake Technologies Corporation is actually cheaper at 25. 0x — 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 Westinghouse Air Brake Technologies Corporation's 0. 97x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Westinghouse Air Brake Technologies Corporation (WAB) delivered a total return of +233.

1%, compared to +112. 6% for ITT Inc. (ITT). Over 10 years, the gap is even starker: ITT returned +527. 0% versus WAB's +247. 1%. 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), Westinghouse Air Brake Technologies Corporation (WAB) is the lower-risk stock at 1.

11β versus ITT Inc. 's 1. 23β — meaning ITT is approximately 11% more volatile than WAB relative to the S&P 500. On balance sheet safety, ITT Inc. (ITT) carries a lower debt/equity ratio of 23% versus 50% for Westinghouse Air Brake Technologies 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 7. 5% for Westinghouse Air Brake Technologies Corporation (WAB). On earnings-per-share growth, the picture is similar: Westinghouse Air Brake Technologies Corporation grew EPS 13. 1% year-over-year, compared to -3. 0% for ITT Inc.. Over a 3-year CAGR, WAB leads at 10. 1% 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.

ITT Inc.

(ITT) is the more profitable company, earning 12. 4% net margin versus 10. 5% for Westinghouse Air Brake Technologies Corporation — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ITT leads at 17. 4% versus 16. 7% for WAB. At the gross margin level — before operating expenses — ITT leads at 35. 4%, 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 Westinghouse Air Brake Technologies Corporation's 0. 97x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Westinghouse Air Brake Technologies Corporation (WAB) trades at 25. 0x forward P/E versus 26. 8x for ITT Inc. — 1. 8x 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.

ITT Inc. (ITT) offers the highest yield at 0. 7%, versus 0. 4% for Westinghouse Air Brake Technologies Corporation (WAB).

For long-horizon retirement investors, ITT Inc.

(ITT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 23), 0. 7% yield, +527. 0% 10Y return). Both have compounded well over 10 years (ITT: +527. 0%, WAB: +247. 1%), 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.

ITT pays a dividend while WAB does not, making them suitable for different income and tax situations. 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.