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 $45.3B against $9.7B — 4.7× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 22.8× against 38.9×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against −1.58%. Advanced Drainage Systems, Inc. has the higher net margin (14.0% vs 5.52%) and the higher return on invested capital (12.3% vs 4.47%). Both pay a dividend; Carrier Global Corporation yields more (1.30% vs 0.35%). Across the 23 metrics below, Advanced Drainage Systems, Inc. leads on 18 and Carrier Global Corporation on 5.

Valuation

Metric CARR WMS Building Products & Equipment median
P/E 38.88 22.84 24.54
P/S 2.11 3.16 2.00
P/B 3.47 5.60 3.02
Price to free cash flow 24.21 18.49 18.49
EV/EBITDA 19.05 13.08 12.63
EV/Sales 2.59 3.65 2.14
Earnings yield 2.57% 4.38% 2.74%
Free cash flow yield 4.13% 5.41% 3.58%

Profitability

Metric CARR WMS Building Products & Equipment median
Gross margin 24.34% 38.65% 29.19%
Operating margin 7.80% 20.74% 6.84%
Net margin 5.52% 14.00% 4.05%
Free cash flow margin 8.72% 17.10% 8.72%
Return on equity 8.57% 25.71% 9.28%
Return on assets 3.22% 10.71% 2.88%
Return on invested capital 4.47% 12.34% 5.16%

Growth

Metric CARR WMS Building Products & Equipment median
Revenue growth (TTM) (1.58%) 10.37% 3.11%
EPS growth (last fiscal year) (72.03%) (5.56%) —
Revenue growth, 5-year CAGR 4.49% 9.00% 5.37%
Net income growth, 5-year CAGR (5.62%) 18.13% 0.00%

Health

Metric CARR WMS Building Products & Equipment median
Debt to equity 0.89 0.95 0.43
Current ratio 1.02 2.12 1.82
Net debt to EBITDA 2.98 1.80 0.98

Dividend

Metric CARR WMS Building Products & Equipment median
Dividend yield 1.30% 0.35% 1.20%
Payout ratio 0.28 0.08 0.04

Size

Metric CARR WMS Building Products & Equipment median
Market cap 45.33b 9.72b 1.18b

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