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

AAON, Inc. and Trex Company, Inc. are both Building Products & Equipment companies. AAON, Inc. is the larger, with a market value of $6.4B against $4.7B — 1.4× the size. Trex Company, Inc. trades at the lower P/E: 27.2× against 37.8×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 6.97%. Trex Company, Inc. has the higher net margin (14.7% vs 8.24%) and the higher return on invested capital (12.1% vs 9.31%). Across the 21 metrics below, Trex Company, Inc. leads on 15 and AAON, Inc. on 6.

Valuation

Metric AAON TREX Building Products & Equipment median
P/E 37.81 27.22 23.15
P/S 3.14 3.87 2.02
P/B 6.00 4.63 2.81
Price to free cash flow n/m 23.55 16.84
EV/EBITDA 21.67 15.69 12.85
EV/Sales 3.35 4.08 2.04
Earnings yield 2.64% 3.67% 2.76%
Free cash flow yield (2.14%) 4.25% 4.23%

Profitability

Metric AAON TREX Building Products & Equipment median
Gross margin 25.57% 38.20% 29.19%
Operating margin 11.05% 20.17% 6.99%
Net margin 8.24% 14.68% 4.05%
Free cash flow margin (6.71%) 16.45% 7.60%
Return on equity 17.28% 17.74% 9.28%
Return on assets 9.76% 11.21% 2.88%
Return on invested capital 9.31% 12.12% 5.16%

Growth

Metric AAON TREX Building Products & Equipment median
Revenue growth (TTM) 53.53% 6.97% 3.11%
EPS growth (last fiscal year) (36.14%) (15.31%) (34.13%)
Revenue growth, 5-year CAGR 22.89% 5.92% 5.37%
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 0.25 0.43
Current ratio 3.01 1.06 1.82
Net debt to EBITDA 1.76 0.40 0.98

Dividend

Metric AAON TREX Building Products & Equipment median
Dividend yield 0.54% — 1.43%
Payout ratio 0.21 — 0.29

Size

Metric AAON TREX Building Products & Equipment median
Market cap 6.37b 4.71b 1.17b

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