Arq, Inc. (ARQ) vs Zurn Elkay Water Solutions Cor (ZWS)

Arq, Inc. and Zurn Elkay Water Solutions Cor are both Pollution & Treatment Controls companies. Zurn Elkay Water Solutions Cor is the larger, with a market value of $7.2B against $104.8M — 69.1× the size. Arq, Inc. has negative trailing earnings, so its P/E is not meaningful; Zurn Elkay Water Solutions Cor trades at 25.0×. Zurn Elkay Water Solutions Cor grew revenue faster over the last twelve months: 10.1% against 7.32%. Zurn Elkay Water Solutions Cor has the higher net margin (15.9% vs −38.4%) and the higher return on invested capital (13.4% vs −15.8%). Across the 20 metrics below, Zurn Elkay Water Solutions Cor leads on 15 and Arq, Inc. on 5.

Valuation

Metric ARQ ZWS Pollution & Treatment Controls median
P/E n/m 25.02 —
P/S 0.83 3.96 2.57
P/B 0.61 4.27 3.65
Price to free cash flow n/m 18.69 —
EV/EBITDA 13.09 15.19 18.43
EV/Sales 0.99 4.07 2.88
Earnings yield (47.43%) 4.00% (13.60%)
Free cash flow yield (4.14%) 5.35% (11.65%)

Profitability

Metric ARQ ZWS Pollution & Treatment Controls median
Gross margin 32.08% 50.41% 32.15%
Operating margin (38.46%) 22.07% (17.50%)
Net margin (38.42%) 15.91% (17.98%)
Free cash flow margin 3.89% 21.19% (10.60%)
Return on equity (25.00%) 17.69% (36.93%)
Return on assets (19.02%) 10.58% (24.86%)
Return on invested capital (15.82%) 13.35% (0.06%)

Growth

Metric ARQ ZWS Pollution & Treatment Controls median
Revenue growth (TTM) 7.32% 10.06% 8.69%
EPS growth (last fiscal year) (807.14%) 25.00% 11.29%
Revenue growth, 5-year CAGR 12.30% 13.24% 12.30%
Net income growth, 5-year CAGR 0.00% 10.37% 0.00%

Health

Metric ARQ ZWS Pollution & Treatment Controls median
Debt to equity 0.16 0.30 0.13
Current ratio 1.20 2.85 1.84
Net debt to EBITDA 5.61 0.53 0.50

Dividend

Metric ARQ ZWS Pollution & Treatment Controls median
Dividend yield — 1.01% —
Payout ratio — 0.26 —

Size

Metric ARQ ZWS Pollution & Treatment Controls median
Market cap 104.81m 7.24b 73.82m

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