AAON, Inc. (AAON) vs Advanced Drainage Systems, Inc. (WMS)

AAON, Inc. and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Advanced Drainage Systems, Inc. is the larger, with a market value of $9.7B against $7.0B — 1.4× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 22.8× against 45.7×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 10.4%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs 8.24%) and the higher return on invested capital (12.3% vs 9.31%). Both pay a dividend; AAON, Inc. yields more (0.51% vs 0.35%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 16 and AAON, Inc. on 6.

Valuation

Metric AAON WMS Building Products & Equipment median
P/E 45.69 22.84 24.54
P/S 3.79 3.16 2.00
P/B 7.25 5.60 3.02
Price to free cash flow n/m 18.49 18.49
EV/EBITDA 25.90 13.08 12.63
EV/Sales 4.01 3.65 2.14
Earnings yield 2.19% 4.38% 2.74%
Free cash flow yield (1.77%) 5.41% 3.58%

Profitability

Metric AAON WMS Building Products & Equipment median
Gross margin 25.57% 38.65% 29.19%
Operating margin 11.05% 20.74% 6.84%
Net margin 8.24% 14.00% 4.05%
Free cash flow margin (6.71%) 17.10% 8.72%
Return on equity 17.28% 25.71% 9.28%
Return on assets 9.76% 10.71% 2.88%
Return on invested capital 9.31% 12.34% 5.16%

Growth

Metric AAON WMS Building Products & Equipment median
Revenue growth (TTM) 53.53% 10.37% 3.11%
EPS growth (last fiscal year) (36.14%) (5.56%) —
Revenue growth, 5-year CAGR 22.89% 9.00% 5.37%
Net income growth, 5-year CAGR 6.37% 18.13% 0.00%

Health

Metric AAON WMS Building Products & Equipment median
Debt to equity 0.43 0.95 0.43
Current ratio 3.01 2.12 1.82
Net debt to EBITDA 1.76 1.80 0.98

Dividend

Metric AAON WMS Building Products & Equipment median
Dividend yield 0.51% 0.35% 1.20%
Payout ratio 0.18 0.08 0.04

Size

Metric AAON WMS Building Products & Equipment median
Market cap 6.99b 9.72b 1.18b

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