Arq, Inc. (ARQ) vs Veralto Corporation (VLTO)

Arq, Inc. and Veralto Corporation are both Pollution & Treatment Controls companies. Veralto Corporation is the larger, with a market value of $23.5B against $87.8M — 267.2× the size. Arq, Inc. has negative trailing earnings, so its P/E is not meaningful; Veralto Corporation trades at 24.3×. Veralto Corporation grew revenue faster over the last twelve months: 6.23% against 4.93%. Veralto Corporation has the higher net margin (17.4% vs −42.1%) and the higher return on invested capital (18.6% vs −16.7%). Across the 20 metrics below, Veralto Corporation leads on 15 and Arq, Inc. on 5.

Valuation

Metric ARQ VLTO Pollution & Treatment Controls median
P/E n/m 24.33 —
P/S 0.69 4.18 3.64
P/B 0.51 7.68 2.08
Price to free cash flow n/m 22.74 —
EV/EBITDA 21.73 18.06 17.68
EV/Sales 0.93 4.40 4.26
Earnings yield (62.16%) 4.11% (18.01%)
Free cash flow yield (11.06%) 4.40% (5.86%)

Profitability

Metric ARQ VLTO Pollution & Treatment Controls median
Gross margin 28.80% 60.18% 34.73%
Operating margin (42.84%) 22.74% (29.01%)
Net margin (42.14%) 17.35% (31.94%)
Free cash flow margin (0.09%) 18.38% (12.20%)
Return on equity (27.02%) 34.31% (38.24%)
Return on assets (20.10%) 12.56% (26.06%)
Return on invested capital (16.69%) 18.57% 0.00%

Growth

Metric ARQ VLTO Pollution & Treatment Controls median
Revenue growth (TTM) 4.93% 6.23% 9.79%
EPS growth (last fiscal year) (807.14%) 12.57% —
Revenue growth, 5-year CAGR 12.30% 4.82% 8.56%
Net income growth, 5-year CAGR 0.00% 5.36% 0.00%

Health

Metric ARQ VLTO Pollution & Treatment Controls median
Debt to equity 0.18 1.09 0.03
Current ratio 1.03 1.78 1.90
Net debt to EBITDA 5.61 0.47 0.30

Dividend

Metric ARQ VLTO Pollution & Treatment Controls median
Dividend yield — 0.33% —
Payout ratio 0.00 — 0.00

Size

Metric ARQ VLTO Pollution & Treatment Controls median
Market cap 87.77m 23.45b 48.08m

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