Falcon’s Beyond Global (NASDAQ:FBYD) versus ITT (NYSE:ITT) Critical Review

Falcon’s Beyond Global (NASDAQ:FBYD) and ITT (NYSE:ITT) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Falcon’s Beyond Global and ITT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Falcon’s Beyond Global	1	0	0	0	1.00
ITT	0	1	10	0	2.91

ITT has a consensus target price of $234.91, indicating a potential upside of 20.55%. Given ITT’s stronger consensus rating and higher probable upside, analysts plainly believe ITT is more favorable than Falcon’s Beyond Global.

Profitability

This table compares Falcon’s Beyond Global and ITT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Falcon’s Beyond Global	51.31%	-10.30%	-2.06%
ITT	10.80%	16.83%	8.61%

Insider and Institutional Ownership

38.9% of Falcon’s Beyond Global shares are held by institutional investors. Comparatively, 91.6% of ITT shares are held by institutional investors. 24.4% of Falcon’s Beyond Global shares are held by company insiders. Comparatively, 0.9% of ITT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Falcon’s Beyond Global and ITT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Falcon’s Beyond Global	$14.90 million	85.87	$2.84 million	$0.21	50.24
ITT	$4.24 billion	4.11	$488.00 million	$5.67	34.37

ITT has higher revenue and earnings than Falcon’s Beyond Global. ITT is trading at a lower price-to-earnings ratio than Falcon’s Beyond Global, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Falcon’s Beyond Global has a beta of -2.79, indicating that its share price is 379% less volatile than the S&P 500. Comparatively, ITT has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Summary

ITT beats Falcon’s Beyond Global on 10 of the 14 factors compared between the two stocks.

About Falcon’s Beyond Global

Falcon’s Beyond Global, Inc. is an experiential entertainment development enterprise. It connects the world by bringing stories to life through theme parks, resorts, animation, consumer products, gaming, and movies. The company propels intellectual property activations concurrently across physical and digital experiences through three core business units. Falcon’s Creative Group is a themed entertainment and master planning firm. Falcon’s Beyond Destinations develops, owns, and operates global entertainment destinations from resorts, theme parks, and attractions to retail, dining and location-based entertainment venues. Falcon’s Beyond Brands expands franchises across multiple platforms from media to gaming, music to consumer products and beyond. The firm also invents in immersive rides, attractions and technologies for entertainment destinations around the world. The company was founded on July 8, 2022 and is headquartered in Orlando, FL.

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.