CECO Environmental Corp. (CECO) vs Veralto Corporation (VLTO)

CECO Environmental Corp. and Veralto Corporation are both Pollution & Treatment Controls companies. Veralto Corporation is the larger, with a market value of $28.3B against $2.2B — 12.8× the size. CECO Environmental Corp. has negative trailing earnings, so its P/E is not meaningful; Veralto Corporation trades at 28.6×. CECO Environmental Corp. grew revenue faster over the last twelve months: 37.6% against 6.40%. Veralto Corporation has the higher net margin (17.3% vs −3.39%) and the higher return on invested capital (18.1% vs −0.12%). Across the 20 metrics below, Veralto Corporation leads on 12 and CECO Environmental Corp. on 8.

Valuation

Metric CECO VLTO Pollution & Treatment Controls median
P/E n/m 28.61 —
P/S 1.80 4.89 2.50
P/B 0.78 8.78 3.39
Price to free cash flow n/m 25.97 —
EV/EBITDA 75.47 21.58 18.45
EV/Sales 2.53 5.09 2.74
Earnings yield (1.82%) 3.50% (14.48%)
Free cash flow yield (0.63%) 3.85% (11.96%)

Profitability

Metric CECO VLTO Pollution & Treatment Controls median
Gross margin 32.15% 60.20% 32.15%
Operating margin (0.60%) 21.84% (17.50%)
Net margin (3.39%) 17.27% (17.98%)
Free cash flow margin (1.13%) 18.84% (10.60%)
Return on equity (2.57%) 32.96% (36.99%)
Return on assets (1.33%) 12.80% (24.89%)
Return on invested capital (0.12%) 18.13% (0.06%)

Growth

Metric CECO VLTO Pollution & Treatment Controls median
Revenue growth (TTM) 37.64% 6.40% 8.69%
EPS growth (last fiscal year) 280.56% 12.57% 11.29%
Revenue growth, 5-year CAGR 19.63% 4.82% 12.30%
Net income growth, 5-year CAGR 43.55% 5.36% 0.00%

Health

Metric CECO VLTO Pollution & Treatment Controls median
Debt to equity 0.35 0.90 0.07
Current ratio 1.50 2.03 1.84
Net debt to EBITDA 1.36 0.47 0.50

Dividend

Metric CECO VLTO Pollution & Treatment Controls median
Dividend yield — 0.45% —
Payout ratio — 0.13 —

Size

Metric CECO VLTO Pollution & Treatment Controls median
Market cap 2.21b 28.34b 62.87m

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