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 $7.7B against $4.1B — 1.9× the size. CECO Environmental Corp. has negative trailing earnings, so its P/E is not meaningful; Zurn Elkay Water Solutions Cor trades at 28.4×. CECO Environmental Corp. grew revenue faster over the last twelve months: 37.6% against 10.7%. Zurn Elkay Water Solutions Cor has the higher net margin (15.5% vs −3.39%) and the higher return on invested capital (13.0% 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 28.45 —
P/S 3.52 4.36 3.64
P/B 1.53 4.70 2.08
Price to free cash flow n/m 20.59 —
EV/EBITDA 126.99 17.29 17.68
EV/Sales 4.26 4.44 4.26
Earnings yield (0.93%) 3.52% (18.01%)
Free cash flow yield (0.32%) 4.86% (5.86%)

Profitability

Metric CECO ZWS Pollution & Treatment Controls median
Gross margin 32.15% 49.01% 34.73%
Operating margin (0.60%) 20.84% (29.01%)
Net margin (3.39%) 15.45% (31.94%)
Free cash flow margin (1.13%) 21.19% (12.20%)
Return on equity (2.57%) 17.13% (38.24%)
Return on assets (1.33%) 10.16% (26.06%)
Return on invested capital (0.12%) 12.98% 0.00%

Growth

Metric CECO ZWS Pollution & Treatment Controls median
Revenue growth (TTM) 37.64% 10.69% 9.79%
EPS growth (last fiscal year) 280.56% 25.00% —
Revenue growth, 5-year CAGR 19.63% 13.24% 8.56%
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 0.03
Current ratio 1.50 3.05 1.90
Net debt to EBITDA 1.36 0.53 0.30

Dividend

Metric CECO ZWS Pollution & Treatment Controls median
Dividend yield — 0.79% —
Payout ratio 0.00 1.65 0.00

Size

Metric CECO ZWS Pollution & Treatment Controls median
Market cap 4.10b 7.73b 48.08m

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