Pets give no faction hits either way. Trust me, I've killed more of them and their masters than I care to count trying to fix my faction for my epic. These pets give no faction and to my knowledge no loot. The shadowed gear drops only off the shadowed men. Pets are completely worthless.
The shadowed men pets in lava storm look just like folating swords, probabaly because the shadowed man camp there is all the snow cone looking ones but just a little info there incase you see a floating sword and can't read the name and are to dumb to target :)