DXP Enterprises, Inc. (DXPE) vs Resideo Technologies, Inc. (REZI)

DXP Enterprises, Inc. and Resideo Technologies, Inc. are both Industrial Distribution companies. DXP Enterprises, Inc. and Resideo Technologies, Inc. are of similar size ($3.0B and $2.8B). Resideo Technologies, Inc. trades at the lower P/E: 7.9× against 32.2×. DXP Enterprises, Inc. grew revenue faster over the last twelve months: 11.5% against 3.42%. Resideo Technologies, Inc. has the higher net margin (4.95% vs 4.35%) and the lower return on invested capital (5.86% vs 10.2%). Across the 20 metrics below, DXP Enterprises, Inc. leads on 12 and Resideo Technologies, Inc. on 8.

Valuation

Metric DXPE REZI Industrial Distribution median
P/E 32.18 7.88 28.81
P/S 1.39 0.36 1.10
P/B 5.51 1.09 3.59
Price to free cash flow 24.98 n/m 22.50
EV/EBITDA 15.13 7.39 15.13
EV/Sales 1.68 0.70 1.31
Earnings yield 3.11% 12.70% 3.16%
Free cash flow yield 4.00% (50.71%) 3.85%

Profitability

Metric DXPE REZI Industrial Distribution median
Gross margin 31.76% 29.56% 30.34%
Operating margin 8.80% 6.89% 8.06%
Net margin 4.35% 4.95% 4.95%
Free cash flow margin 5.57% (18.28%) 4.67%
Return on equity 18.45% 16.28% 14.29%
Return on assets 5.85% 4.38% 5.30%
Return on invested capital 10.22% 5.86% 8.13%

Growth

Metric DXPE REZI Industrial Distribution median
Revenue growth (TTM) 11.47% 3.42% 7.80%
EPS growth (last fiscal year) 27.25% (718.03%) —
Revenue growth, 5-year CAGR 14.94% 8.06% 9.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.99%

Health

Metric DXPE REZI Industrial Distribution median
Debt to equity 1.55 1.18 0.53
Current ratio 2.99 2.22 2.47
Net debt to EBITDA 2.45 3.12 1.17

Dividend

Metric DXPE REZI Industrial Distribution median
Dividend yield — — 1.54%
Payout ratio 0.00 0.00 0.00

Size

Metric DXPE REZI Industrial Distribution median
Market cap 3.00b 2.78b 5.60b

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