AMETEK, Inc. (AME) vs Emerson Electric Co. (EMR)

AMETEK, Inc. and Emerson Electric Co. are both Specialty Industrial Machinery companies. Emerson Electric Co. is the larger, with a market value of $87.4B against $66.0B — 1.3× the size. Emerson Electric Co. trades at the lower P/E: 34.6× against 36.5×. AMETEK, Inc. grew revenue faster over the last twelve months: 12.7% against 4.83%. AMETEK, Inc. has the higher net margin (20.0% vs 13.8%) and the higher return on invested capital (9.95% vs 9.33%). Both pay a dividend; Emerson Electric Co. yields more (2.08% vs 0.64%). Across the 23 metrics below, AMETEK, Inc. leads on 12 and Emerson Electric Co. on 11.

Valuation

Metric AME EMR Specialty Industrial Machinery median
P/E 36.50 34.62 29.62
P/S 7.30 4.74 2.77
P/B 5.10 4.34 3.04
Price to free cash flow 31.48 25.55 23.81
EV/EBITDA 24.00 16.13 16.05
EV/Sales 7.50 5.33 2.94
Earnings yield 2.74% 2.89% 3.08%
Free cash flow yield 3.18% 3.91% 3.12%

Profitability

Metric AME EMR Specialty Industrial Machinery median
Gross margin 36.36% 53.16% 35.90%
Operating margin 25.90% 25.10% 11.22%
Net margin 20.04% 13.83% 7.80%
Free cash flow margin 23.21% 18.57% 9.51%
Return on equity 14.56% 12.80% 11.10%
Return on assets 9.89% 6.09% 4.63%
Return on invested capital 9.95% 9.33% 5.37%

Growth

Metric AME EMR Specialty Industrial Machinery median
Revenue growth (TTM) 12.66% 4.83% 6.45%
EPS growth (last fiscal year) 7.93% 17.78% —
Revenue growth, 5-year CAGR 10.27% 1.43% 8.31%
Net income growth, 5-year CAGR 11.15% 3.14% 5.04%

Health

Metric AME EMR Specialty Industrial Machinery median
Debt to equity 0.18 0.64 0.35
Current ratio 1.21 0.90 2.11
Net debt to EBITDA 0.78 1.95 1.32

Dividend

Metric AME EMR Specialty Industrial Machinery median
Dividend yield 0.64% 2.08% 1.12%
Payout ratio 0.18 0.37 0.17

Size

Metric AME EMR Specialty Industrial Machinery median
Market cap 66.03b 87.37b 1.97b

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