Reviewing Eaton (NYSE:ETN) and Fitell (NASDAQ:FTEL)

Fitell (NASDAQ:FTEL) and Eaton (NYSE:ETN) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Profitability

This table compares Fitell and Eaton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fitell	N/A	N/A	N/A
Eaton	14.74%	24.36%	11.45%

Earnings and Valuation

This table compares Fitell and Eaton”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fitell	$5.20 million	0.21	-$680,000.00	N/A	N/A
Eaton	$24.88 billion	5.29	$3.79 billion	$10.00	33.90

Eaton has higher revenue and earnings than Fitell.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fitell and Eaton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fitell	1	0	0	0	1.00
Eaton	0	6	16	1	2.78

Eaton has a consensus price target of $401.50, indicating a potential upside of 18.44%. Given Eaton’s stronger consensus rating and higher possible upside, analysts clearly believe Eaton is more favorable than Fitell.

Institutional and Insider Ownership

0.1% of Fitell shares are owned by institutional investors. Comparatively, 83.0% of Eaton shares are owned by institutional investors. 0.3% of Eaton shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Fitell has a beta of 7.03, suggesting that its share price is 603% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Summary

Eaton beats Fitell on 12 of the 13 factors compared between the two stocks.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.