DNOW Inc. (DNOW) vs Pool Corporation (POOL)

DNOW Inc. and Pool Corporation are both Industrial Distribution companies. Pool Corporation is the larger, with a market value of $5.9B against $2.9B — 2.0× the size. DNOW Inc. has negative trailing earnings, so its P/E is not meaningful; Pool Corporation trades at 15.1×. DNOW Inc. grew revenue faster over the last twelve months: 69.8% against 2.23%. Pool Corporation has the higher net margin (7.37% vs −4.63%) and the higher return on invested capital (14.1% vs −4.78%). Across the 20 metrics below, Pool Corporation leads on 13 and DNOW Inc. on 7.

Valuation

Metric DNOW POOL Industrial Distribution median
P/E n/m 15.13 28.81
P/S 0.71 1.10 1.10
P/B 1.38 4.72 3.59
Price to free cash flow 22.50 19.76 22.50
EV/EBITDA n/m 11.44 15.13
EV/Sales 0.80 1.35 1.31
Earnings yield (6.71%) 6.61% 3.16%
Free cash flow yield 4.44% 5.06% 3.85%

Profitability

Metric DNOW POOL Industrial Distribution median
Gross margin 15.85% 29.58% 30.34%
Operating margin (4.60%) 10.76% 8.06%
Net margin (4.63%) 7.37% 4.95%
Free cash flow margin 3.33% 5.58% 4.67%
Return on equity (11.60%) 31.08% 14.29%
Return on assets (6.90%) 10.70% 5.30%
Return on invested capital (4.78%) 14.10% 8.13%

Growth

Metric DNOW POOL Industrial Distribution median
Revenue growth (TTM) 69.84% 2.23% 7.80%
EPS growth (last fiscal year) (202.70%) (3.98%) —
Revenue growth, 5-year CAGR 11.74% 6.09% 9.01%
Net income growth, 5-year CAGR 0.00% 1.98% 0.99%

Health

Metric DNOW POOL Industrial Distribution median
Debt to equity 0.23 1.06 0.53
Current ratio 2.14 2.67 2.47
Net debt to EBITDA (8.52) 1.73 1.17

Dividend

Metric DNOW POOL Industrial Distribution median
Dividend yield — 1.10% 1.54%
Payout ratio 0.00 0.27 0.00

Size

Metric DNOW POOL Industrial Distribution median
Market cap 2.88b 5.88b 5.60b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack