Donaldson Company, Inc. (DCI) vs Flowserve Corporation (FLS)

Donaldson Company, Inc. and Flowserve Corporation are both Specialty Industrial Machinery companies. Donaldson Company, Inc. and Flowserve Corporation are of similar size ($10.0B and $9.7B). Donaldson Company, Inc. trades at the lower P/E: 22.4× against 25.6×. Donaldson Company, Inc. grew revenue faster over the last twelve months: 5.28% against −0.26%. Donaldson Company, Inc. has the higher net margin (11.7% vs 8.01%) and the higher return on invested capital (13.4% vs 6.57%). Both pay a dividend; Flowserve Corporation yields more (1.99% vs 1.49%). Across the 23 metrics below, Donaldson Company, Inc. leads on 14 and Flowserve Corporation on 9.

Valuation

Metric DCI FLS Specialty Industrial Machinery median
P/E 22.36 25.63 29.62
P/S 2.61 2.03 2.77
P/B 5.98 4.05 3.04
Price to free cash flow 23.21 21.81 23.81
EV/EBITDA 16.62 20.32 16.05
EV/Sales 2.88 2.34 2.94
Earnings yield 4.47% 3.90% 3.08%
Free cash flow yield 4.31% 4.58% 3.12%

Profitability

Metric DCI FLS Specialty Industrial Machinery median
Gross margin 34.64% 33.88% 35.90%
Operating margin 15.44% 9.44% 11.22%
Net margin 11.68% 8.01% 7.80%
Free cash flow margin 11.24% 9.32% 9.51%
Return on equity 0.00% 16.12% 11.10%
Return on assets 13.03% 6.19% 4.63%
Return on invested capital 13.42% 6.57% 5.37%

Growth

Metric DCI FLS Specialty Industrial Machinery median
Revenue growth (TTM) 5.28% (0.26%) 6.45%
EPS growth (last fiscal year) 26.23% 23.36% —
Revenue growth, 5-year CAGR 6.37% 4.87% 8.31%
Net income growth, 5-year CAGR 9.60% 21.56% 5.04%

Health

Metric DCI FLS Specialty Industrial Machinery median
Debt to equity 0.73 0.92 0.35
Current ratio 2.08 2.15 2.11
Net debt to EBITDA 1.46 1.58 1.32

Dividend

Metric DCI FLS Specialty Industrial Machinery median
Dividend yield 1.49% 1.99% 1.12%
Payout ratio 0.32 0.44 0.17

Size

Metric DCI FLS Specialty Industrial Machinery median
Market cap 10.04b 9.67b 1.97b

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