CECO Environmental Corp. (CECO) vs Zurn Elkay Water Solutions Cor (ZWS)

CECO Environmental Corp. 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 $2.2B — 3.3× the size. CECO Environmental Corp. has negative trailing earnings, so its P/E is not meaningful; Zurn Elkay Water Solutions Cor trades at 25.2×. CECO Environmental Corp. grew revenue faster over the last twelve months: 37.6% against 10.1%. Zurn Elkay Water Solutions Cor has the higher net margin (15.9% vs −3.39%) and the higher return on invested capital (13.4% vs −0.12%). Across the 20 metrics below, Zurn Elkay Water Solutions Cor leads on 13 and CECO Environmental Corp. on 7.

Valuation

Metric CECO ZWS Pollution & Treatment Controls median
P/E n/m 25.25 —
P/S 1.80 4.00 2.50
P/B 0.78 4.31 3.39
Price to free cash flow n/m 18.86 —
EV/EBITDA 75.47 15.32 18.45
EV/Sales 2.53 4.10 2.74
Earnings yield (1.82%) 3.96% (14.48%)
Free cash flow yield (0.63%) 5.30% (11.96%)

Profitability

Metric CECO ZWS Pollution & Treatment Controls median
Gross margin 32.15% 50.41% 32.15%
Operating margin (0.60%) 22.07% (17.50%)
Net margin (3.39%) 15.91% (17.98%)
Free cash flow margin (1.13%) 21.19% (10.60%)
Return on equity (2.57%) 17.69% (36.99%)
Return on assets (1.33%) 10.58% (24.89%)
Return on invested capital (0.12%) 13.35% (0.06%)

Growth

Metric CECO ZWS Pollution & Treatment Controls median
Revenue growth (TTM) 37.64% 10.06% 8.69%
EPS growth (last fiscal year) 280.56% 25.00% 11.29%
Revenue growth, 5-year CAGR 19.63% 13.24% 12.30%
Net income growth, 5-year CAGR 43.55% 10.37% 0.00%

Health

Metric CECO ZWS Pollution & Treatment Controls median
Debt to equity 0.35 0.30 0.07
Current ratio 1.50 2.85 1.84
Net debt to EBITDA 1.36 0.53 0.50

Dividend

Metric CECO ZWS Pollution & Treatment Controls median
Dividend yield — 1.00% —
Payout ratio — 0.26 —

Size

Metric CECO ZWS Pollution & Treatment Controls median
Market cap 2.21b 7.24b 62.87m

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