Babcock (BW) vs Enerpac Tool Group Corp. (EPAC)

Babcock and Enerpac Tool Group Corp. are both Specialty Industrial Machinery companies. Enerpac Tool Group Corp. is the larger, with a market value of $1.8B against $931.0M — 2.0× the size. Babcock has negative trailing earnings, so its P/E is not meaningful; Enerpac Tool Group Corp. trades at 20.2×. Babcock grew revenue faster over the last twelve months: 50.9% against 4.27%. Enerpac Tool Group Corp. has the higher net margin (14.7% vs −3.98%) and the lower return on invested capital (17.1% vs 134.7%). Across the 21 metrics below, Enerpac Tool Group Corp. leads on 12 and Babcock on 9.

Valuation

Metric BW EPAC Specialty Industrial Machinery median
P/E n/m 20.17 29.62
P/S 1.07 2.89 2.77
P/B 15.58 4.32 3.04
Price to free cash flow 5.64 16.31 23.81
EV/EBITDA 21.34 12.39 16.05
EV/Sales 1.02 3.00 2.94
Earnings yield (2.87%) 4.96% 3.08%
Free cash flow yield 17.72% 6.13% 3.12%

Profitability

Metric BW EPAC Specialty Industrial Machinery median
Gross margin 19.74% 50.09% 35.90%
Operating margin 3.08% 21.25% 11.22%
Net margin (3.98%) 14.72% 7.80%
Free cash flow margin 18.95% 17.71% 9.51%
Return on equity 26.41% 21.65% 11.10%
Return on assets (3.90%) 11.38% 4.63%
Return on invested capital 134.68% 17.07% 5.37%

Growth

Metric BW EPAC Specialty Industrial Machinery median
Revenue growth (TTM) 50.93% 4.27% 6.45%
EPS growth (last fiscal year) 41.46% 8.97% —
Revenue growth, 5-year CAGR 0.74% 4.57% 8.31%
Net income growth, 5-year CAGR 0.00% 164.02% 5.04%

Health

Metric BW EPAC Specialty Industrial Machinery median
Debt to equity 5.28 0.44 0.35
Current ratio 1.45 2.67 2.11
Net debt to EBITDA 2.60 0.25 1.32

Dividend

Metric BW EPAC Specialty Industrial Machinery median
Dividend yield — 0.13% 1.12%
Payout ratio 0.00 0.04 0.17

Size

Metric BW EPAC Specialty Industrial Machinery median
Market cap 931.03m 1.84b 1.97b

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