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FSS vs ITT
Which Stock Would AI Choose? Federal Signal Corporation (FSS) vs. ITT Inc. (ITT) Stock Comparison
Key Takeaways
- FSS (Federal Signal Corporation) delivered record FY2025 results with 17% net sales growth and 27% adjusted EPS (earnings per share) growth, driven by municipal infrastructure demand and a disciplined acquisition strategy.
- ITT (ITT Inc.) reported FY2025 revenue of $3.94 billion and generated $555 million in free cash flow — a 27% year-over-year increase — while executing the transformative pending acquisition of SPX FLOW.
- Both companies are mid-cap industrials with strong multi-year growth trajectories, but they operate in distinctly different end markets: FSS leans into environmental and public-safety solutions, while ITT spans diversified engineered components across industrial, transportation, aerospace, and defense.
- FSS has experienced a notable pullback from its 52-week high, while ITT has maintained steadier upward momentum, reflecting differences in market sentiment and sector exposure.
- Valuation metrics diverge meaningfully: FSS trades at approximately 27 times trailing earnings with a ~$7.3 billion market cap, while ITT carries a higher market cap near $17–19 billion and a somewhat richer P/E (price-to-earnings) multiple.
- Investors seeking exposure to municipal and environmental infrastructure spending may find FSS more targeted, whereas ITT offers broader diversification across industrial end markets and a larger free-cash-flow profile.
Introduction
Investors navigating the industrial sector often encounter a wide spectrum of companies — from niche specialists to diversified conglomerates. FSS (Federal Signal Corporation) and ITT (ITT Inc.) represent two distinct approaches within this space. Federal Signal has carved out leadership in environmental and safety solutions, serving municipal, governmental, and industrial customers. ITT, by contrast, operates as a global multi-industry manufacturer spanning industrial process equipment, motion technologies, and aerospace connectors. This stock comparison examines how these two companies stack up in the current market environment, providing a balanced, data-driven perspective for traders and investors evaluating relative performance and positioning.
FSS Overview and Recent Performance
Federal Signal Corporation, headquartered in Downers Grove, Illinois, designs and manufactures specialty vehicles and equipment for environmental and public-safety applications. The company operates through two segments: the Environmental Solutions Group (ESG), which produces street sweepers, safe-digging trucks, road-marking vehicles, and metal-extraction support equipment, and the Safety and Security Systems Group (SSG), which covers public-safety equipment, warning systems, and signaling products for law enforcement and emergency vehicles.
In recent market activity, FSS shares have pulled back from a 52-week high of approximately $134.51 reached in early July 2026, trading around $118–$119 in late July. This reflects a roughly 11–12% decline from peak levels within a matter of weeks. The pullback followed a period of robust gains driven by record-setting financial results. For full-year 2025, Federal Signal posted net sales of $2.18 billion — a 17% increase over the prior year — along with adjusted EPS of $4.23, representing 27% growth. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $438.9 million, up 25% year over year. The company also issued 2026 guidance calling for net sales of $2.55–$2.65 billion and adjusted EPS of $4.50–$4.80, signaling continued confidence in its growth trajectory. Recent acquisitions such as Hog, Standard, and New Way have expanded ESG's product portfolio and geographic reach, while the SSG segment has benefited from increased public-safety spending and in-sourcing initiatives that improve margin profiles.
ITT Overview and Recent Performance
ITT Inc., based in Stamford, Connecticut, is a diversified global manufacturer of engineered components and customized technology solutions. The company operates across three segments: Motion Technologies (MT), which produces friction materials for automotive braking systems and shock absorbers for rail applications; Industrial Process (IP), which manufactures pumps, valves, and fluid-handling equipment for industries including oil and gas, mining, power generation, and chemical processing; and Connect & Control Technologies (CCT), which supplies connectors and control components for aerospace, defense, and industrial markets.
ITT shares have shown resilience in recent months, supported by consistent execution and a strong backlog nearing $1.9 billion as of year-end 2025. For full-year 2025, ITT generated revenue of $3.94 billion (up 8% year over year) and adjusted EPS of $6.72, a 14.3% increase. Free cash flow reached $555 million — a 27% jump — with a free cash flow margin of 14.1%, already hitting the company's 2030 target ahead of schedule. The company's fourth quarter of 2025 marked a milestone: both orders and revenue surpassed $1 billion in a single quarter for the first time. Strategic acquisitions, including kSARIA (aerospace and defense connectors) and Svanehøj (marine pump systems), have strengthened ITT's higher-growth, higher-margin portfolio. The pending acquisition of SPX FLOW — expected to close in Q1 2026 — represents a transformative move that is anticipated to create a world-class flow platform within the Industrial Process segment, with management targeting approximately $80 million in three-year synergies.
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Head-to-Head Comparison
While both FSS and ITT operate in the industrial manufacturing space, their business models and growth drivers differ substantially. FSS is a focused niche leader, holding #1 or #2 market share positions across most of its product categories — including street sweepers, safe-digging trucks, and public-warning systems. Its revenue relies heavily on municipal and government budgets, infrastructure spending cycles, and aftermarket parts and services, which provide recurring revenue streams (aftermarket represented roughly 24% of ESG revenue in recent quarters). ITT, in contrast, is far more diversified: its automotive friction business serves global OEMs (original equipment manufacturers), its pump and valve business spans energy, mining, and chemical end markets, and its connectors business is tied to aerospace and defense platforms — a segment that has seen strong order growth in recent periods.
From a scale perspective, ITT is roughly 1.8 times larger by annual revenue ($3.94 billion vs. $2.18 billion) and carries a substantially larger market capitalization. ITT's free cash flow generation — $555 million in FY2025 — is more than double FSS's operating cash flow of approximately $255 million, reflecting ITT's capital-light segments and strong working-capital management. On the growth front, FSS has posted higher top-line expansion rates recently (17% in FY2025 vs. ITT's 8%), aided by acquisition contributions and robust organic demand from municipal fleets. However, ITT's profitability metrics are compelling in their own right, with adjusted operating margins of 18.2% and improving segment-level margins across all three units.
Risk factors highlight key trade-offs. FSS carries concentration risk tied to North American municipal spending patterns and public-sector procurement cycles, which can be lumpy. ITT's broader geographic and end-market diversification — with significant exposure to Europe and Asia — offers some insulation but also introduces currency volatility and exposure to global industrial cycles. Additionally, ITT is in the midst of integrating multiple acquisitions simultaneously (kSARIA, Svanehøj, and the pending SPX FLOW deal), which adds execution complexity. FSS also pursues M&A (mergers and acquisitions) aggressively — having completed 13 acquisitions since 2016 — but its deals tend to be smaller and more easily absorbed within its platform.
Sentiment-wise, FSS's recent pullback from its 52-week high suggests some profit-taking and potential valuation compression, whereas ITT's steadier trajectory reflects investor confidence in its long-term transformation narrative and free-cash-flow compounding story. FSS currently trades at a trailing P/E of approximately 27, compared to ITT's roughly 30–31 times earnings, making FSS marginally less expensive on that metric — though both stocks command premium valuations relative to the broader industrial sector.
Tickeron AI Verdict
Based on observable trends, relative positioning, and momentum characteristics, Tickeron's AI-driven analytical framework would likely find both stocks investable but for different reasons. ITT currently exhibits stronger trend consistency — supported by broad-based organic growth across all three segments, a near-$1.9 billion backlog, free cash flow generation that has already reached 2030 targets, and a transformative acquisition in SPX FLOW that provides a visible catalyst pipeline. The company's diversification across aerospace, defense, industrial, and transportation end markets offers a degree of resilience that algorithmic models often favor in uncertain macro environments. FSS, while posting higher headline growth rates and operating with enviable niche dominance, has shown greater near-term price volatility, and its recent pullback — though potentially creating an attractive entry point — may signal caution from momentum-oriented models in the short term. On balance, the AI would likely lean toward ITT for its combination of trend stability, free-cash-flow quality, and multi-catalyst profile, while recognizing FSS as a high-quality compounder worth monitoring for a re-entry signal once near-term selling pressure subsides.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FSS is a StrongBuy and ITT is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
FSS’s FA Score shows that 1 FA rating(s) are green whileITT’s FA Score has 2 green FA rating(s).
- FSS’s FA Score: 1 green, 4 red.
- ITT’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
FSS’s TA Score shows that 8 TA indicator(s) are bullish while ITT’s TA Score has 5 bullish TA indicator(s).
- FSS’s TA Score: 8 bullish, 3 bearish.
- ITT’s TA Score: 5 bullish, 3 bearish.
Price Growth
FSS (@Trucks/Construction/Farm Machinery) experienced а +5.10% price change this week, while ITT (@Industrial Machinery) price change was +0.06% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was -3.97%. For the same industry, the average monthly price growth was -6.17%, and the average quarterly price growth was -5.07%.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -1.07%. For the same industry, the average monthly price growth was -11.16%, and the average quarterly price growth was -5.53%.
Reported Earning Dates
FSS is expected to report earnings on Oct 29, 2026.
ITT is expected to report earnings on Aug 06, 2026.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (-3.97% weekly)The industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
@Industrial Machinery (-1.07% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| FSS | ITT | FSS / ITT | |
| Capitalization | 7.63B | 17.5B | 44% |
| EBITDA | 484M | 860M | 56% |
| Gain YTD | 15.378 | 13.408 | 115% |
| P/E Ratio | 26.93 | 34.56 | 78% |
| Revenue | 2.45B | 4.24B | 58% |
| Total Cash | 62.8M | N/A | - |
| Total Debt | 486M | 3.97B | 12% |
FSS | ITT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 86 | 31 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 68 Overvalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 12 | 17 | |
SMR RATING 1..100 | 45 | 65 | |
PRICE GROWTH RATING 1..100 | 50 | 49 | |
P/E GROWTH RATING 1..100 | 77 | 26 | |
SEASONALITY SCORE 1..100 | 65 | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ITT's Valuation (59) in the Industrial Machinery industry is in the same range as FSS (68) in the Trucks Or Construction Or Farm Machinery industry. This means that ITT’s stock grew similarly to FSS’s over the last 12 months.
FSS's Profit vs Risk Rating (12) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ITT (17) in the Industrial Machinery industry. This means that FSS’s stock grew similarly to ITT’s over the last 12 months.
FSS's SMR Rating (45) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ITT (65) in the Industrial Machinery industry. This means that FSS’s stock grew similarly to ITT’s over the last 12 months.
ITT's Price Growth Rating (49) in the Industrial Machinery industry is in the same range as FSS (50) in the Trucks Or Construction Or Farm Machinery industry. This means that ITT’s stock grew similarly to FSS’s over the last 12 months.
ITT's P/E Growth Rating (26) in the Industrial Machinery industry is somewhat better than the same rating for FSS (77) in the Trucks Or Construction Or Farm Machinery industry. This means that ITT’s stock grew somewhat faster than FSS’s over the last 12 months.
| FSS | ITT | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 63% | N/A |
| Stochastic ODDS (%) | 4 days ago 70% | 4 days ago 53% |
| Momentum ODDS (%) | 4 days ago 59% | 4 days ago 69% |
| MACD ODDS (%) | 4 days ago 76% | 4 days ago 67% |
| TrendWeek ODDS (%) | 4 days ago 68% | 4 days ago 64% |
| TrendMonth ODDS (%) | 4 days ago 54% | 4 days ago 58% |
| Advances ODDS (%) | 4 days ago 69% | 4 days ago 62% |
| Declines ODDS (%) | 6 days ago 55% | 15 days ago 59% |
| BollingerBands ODDS (%) | 4 days ago 57% | 4 days ago 55% |
| Aroon ODDS (%) | 4 days ago 61% | N/A |
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FSS and
Correlation & Price change
A.I.dvisor indicates that over the last year, FSS has been loosely correlated with ZWS. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if FSS jumps, then ZWS could also see price increases.
ITT and
Correlation & Price change
A.I.dvisor indicates that over the last year, ITT has been closely correlated with RBC. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if ITT jumps, then RBC could also see price increases.
| Ticker / NAME | Correlation To ITT | 1D Price Change % | ||
|---|---|---|---|---|
| ITT | 100% | +1.54% | ||
| RBC - ITT | 70% Closely correlated | -1.88% | ||
| TKR - ITT | 68% Closely correlated | +1.06% | ||
| ATMU - ITT | 67% Closely correlated | N/A | ||
| FSS - ITT | 66% Closely correlated | +0.32% | ||
| SPXC - ITT | 64% Loosely correlated | +10.20% | ||
More | ||||