AAON, Inc. (AAON) vs Trex Company, Inc. (TREX)

AAON, Inc. and Trex Company, Inc. are both Building Products & Equipment companies. Trex Company, Inc. is the larger, with a market value of $5.7B against $4.5B — 1.3× the size. AAON, Inc. trades at the lower P/E: 27.7× against 32.8×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 8.58%. Trex Company, Inc. has the higher net margin (13.9% vs 8.24%) and the higher return on invested capital (13.1% vs 9.31%). Across the 21 metrics below, Trex Company, Inc. leads on 11 and AAON, Inc. on 10.

Valuation

Metric AAON TREX Building Products & Equipment median
P/E 27.72 32.85 23.33
P/S 2.30 4.47 2.09
P/B 4.40 5.67 2.85
Price to free cash flow n/m 29.63 18.42
EV/EBITDA 16.27 18.31 13.29
EV/Sales 2.52 4.61 2.28
Earnings yield 3.61% 3.04% 3.04%
Free cash flow yield (2.92%) 3.38% 4.26%

Profitability

Metric AAON TREX Building Products & Equipment median
Gross margin 25.57% 37.09% 31.88%
Operating margin 11.05% 19.17% 7.18%
Net margin 8.24% 13.89% 4.11%
Free cash flow margin (6.71%) 15.10% 6.41%
Return on equity 17.28% 17.35% 5.95%
Return on assets 9.76% 11.79% 3.90%
Return on invested capital 9.31% 13.05% 5.54%

Growth

Metric AAON TREX Building Products & Equipment median
Revenue growth (TTM) 53.53% 8.58% 6.27%
EPS growth (last fiscal year) (36.14%) (19.55%) (28.29%)
Revenue growth, 5-year CAGR 22.89% 5.92% 4.81%
Net income growth, 5-year CAGR 6.37% 1.63% 0.00%

Health

Metric AAON TREX Building Products & Equipment median
Debt to equity 0.43 0.17 0.55
Current ratio 3.01 1.23 1.83
Net debt to EBITDA 1.76 0.40 1.45

Dividend

Metric AAON TREX Building Products & Equipment median
Dividend yield 0.74% — 1.37%
Payout ratio 0.21 — 0.28

Size

Metric AAON TREX Building Products & Equipment median
Market cap 4.49b 5.71b 3.22b

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