Carrier Global Corporation (CARR) vs Advanced Drainage Systems, Inc. (WMS)

Carrier Global Corporation and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Carrier Global Corporation is the larger, with a market value of $43.5B against $9.3B — 4.7× the size. Carrier Global Corporation has negative trailing earnings, so its P/E is not meaningful; Advanced Drainage Systems, Inc. trades at 23.3×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 9.18% against 3.33%. Advanced Drainage Systems, Inc. has the higher net margin (12.4% vs −7.90%) and the higher return on invested capital (11.9% vs −3.31%). Both pay a dividend; Carrier Global Corporation yields more (1.80% vs 0.62%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 17 and Carrier Global Corporation on 5.

Valuation

Metric CARR WMS Building Products & Equipment median
P/E n/m 23.33 23.33
P/S 1.92 2.85 2.09
P/B 4.20 5.22 2.85
Price to free cash flow 18.42 16.89 18.42
EV/EBITDA 16.37 12.37 13.29
EV/Sales 2.37 3.34 2.28
Earnings yield (4.15%) 4.29% 3.04%
Free cash flow yield 5.43% 5.92% 4.26%

Profitability

Metric CARR WMS Building Products & Equipment median
Gross margin 24.64% 38.36% 31.88%
Operating margin (4.77%) 19.62% 7.18%
Net margin (7.90%) 12.44% 4.11%
Free cash flow margin 10.43% 0.00% 6.41%
Return on equity (14.26%) 22.36% 5.95%
Return on assets (5.03%) 9.49% 3.90%
Return on invested capital (3.31%) 11.90% 5.54%

Growth

Metric CARR WMS Building Products & Equipment median
Revenue growth (TTM) 3.33% 9.18% 6.27%
EPS growth (last fiscal year) (72.03%) (5.56%) (28.29%)
Revenue growth, 5-year CAGR 4.49% 9.00% 4.81%
Net income growth, 5-year CAGR (5.62%) 18.13% 0.00%

Health

Metric CARR WMS Building Products & Equipment median
Debt to equity 1.10 0.97 0.55
Current ratio 1.00 2.13 1.83
Net debt to EBITDA 2.98 1.80 1.45

Dividend

Metric CARR WMS Building Products & Equipment median
Dividend yield 1.80% 0.62% 1.37%
Payout ratio 0.67 0.14 0.28

Size

Metric CARR WMS Building Products & Equipment median
Market cap 43.53b 9.25b 3.22b

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