AMETEK, Inc. (AME) vs Eaton Corporation, PLC (ETN)

AMETEK, Inc. and Eaton Corporation, PLC are both Specialty Industrial Machinery companies. Eaton Corporation, PLC is the larger, with a market value of $172.5B against $66.0B — 2.6× the size. AMETEK, Inc. trades at the lower P/E: 36.5× against 44.6×. Eaton Corporation, PLC grew revenue faster over the last twelve months: 15.5% against 12.7%. AMETEK, Inc. has the higher net margin (20.0% vs 12.8%) and the higher return on invested capital (9.95% vs 8.71%). Both pay a dividend; Eaton Corporation, PLC yields more (1.42% vs 0.64%). Across the 23 metrics below, AMETEK, Inc. leads on 15 and Eaton Corporation, PLC on 8.

Valuation

Metric AME ETN Specialty Industrial Machinery median
P/E 36.50 44.62 29.62
P/S 7.30 5.69 2.77
P/B 5.10 8.42 3.04
Price to free cash flow 31.48 42.73 23.81
EV/EBITDA 24.00 29.04 16.05
EV/Sales 7.50 6.29 2.94
Earnings yield 2.74% 2.24% 3.08%
Free cash flow yield 3.18% 2.34% 3.12%

Profitability

Metric AME ETN Specialty Industrial Machinery median
Gross margin 36.36% 35.90% 35.90%
Operating margin 25.90% 17.71% 11.22%
Net margin 20.04% 12.75% 7.80%
Free cash flow margin 23.21% 13.32% 9.51%
Return on equity 14.56% 19.66% 11.10%
Return on assets 9.89% 7.92% 4.63%
Return on invested capital 9.95% 8.71% 5.37%

Growth

Metric AME ETN Specialty Industrial Machinery median
Revenue growth (TTM) 12.66% 15.53% 6.45%
EPS growth (last fiscal year) 7.93% 10.00% —
Revenue growth, 5-year CAGR 10.27% 8.98% 8.31%
Net income growth, 5-year CAGR 11.15% 23.72% 5.04%

Health

Metric AME ETN Specialty Industrial Machinery median
Debt to equity 0.18 0.91 0.35
Current ratio 1.21 1.24 2.11
Net debt to EBITDA 0.78 1.46 1.32

Dividend

Metric AME ETN Specialty Industrial Machinery median
Dividend yield 0.64% 1.42% 1.12%
Payout ratio 0.18 0.49 0.17

Size

Metric AME ETN Specialty Industrial Machinery median
Market cap 66.03b 172.54b 1.97b

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