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 $6.4B — 1.5× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 21.9× against 37.8×. 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; Advanced Drainage Systems, Inc. yields more (0.59% vs 0.54%). 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 37.81 21.93 23.15
P/S 3.14 3.04 2.02
P/B 6.00 5.38 2.81
Price to free cash flow n/m 17.76 16.84
EV/EBITDA 21.67 12.63 12.85
EV/Sales 3.35 3.52 2.04
Earnings yield 2.64% 4.56% 2.76%
Free cash flow yield (2.14%) 5.63% 4.23%

Profitability

Metric AAON WMS Building Products & Equipment median
Gross margin 25.57% 38.65% 29.19%
Operating margin 11.05% 20.74% 6.99%
Net margin 8.24% 14.00% 4.05%
Free cash flow margin (6.71%) 17.10% 7.60%
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%) (34.13%)
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 0.54% 0.59% 1.43%
Payout ratio 0.21 0.13 0.29

Size

Metric AAON WMS Building Products & Equipment median
Market cap 6.37b 9.69b 1.17b

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