Ecolab Inc. (ECL) vs Linde PLC (LIN)

Ecolab Inc. and Linde PLC are both Specialty Chemicals companies. Linde PLC is the larger, with a market value of $214.9B against $77.2B — 2.8× the size. Linde PLC trades at the lower P/E: 30.2× against 37.3×. Ecolab Inc. grew revenue faster over the last twelve months: 7.11% against 6.63%. Linde PLC has the higher net margin (20.4% vs 12.6%) and the lower return on invested capital (9.20% vs 9.83%). Both pay a dividend; Linde PLC yields more (1.33% vs 1.06%). Across the 23 metrics below, Linde PLC leads on 14 and Ecolab Inc. on 9.

Valuation

Metric ECL LIN Specialty Chemicals median
P/E 37.27 30.20 24.83
P/S 4.66 6.13 1.46
P/B 7.78 5.35 1.76
Price to free cash flow 41.59 43.69 19.84
EV/EBITDA 22.28 18.21 13.18
EV/Sales 5.14 6.78 1.84
Earnings yield 2.68% 3.31% 2.11%
Free cash flow yield 2.40% 2.29% 2.29%

Profitability

Metric ECL LIN Specialty Chemicals median
Gross margin 44.11% 48.35% 29.23%
Operating margin 16.93% 26.45% 3.63%
Net margin 12.57% 20.43% 2.89%
Free cash flow margin 11.20% 14.03% 3.78%
Return on equity 21.78% 17.98% 3.62%
Return on assets 7.89% 8.31% 0.35%
Return on invested capital 9.83% 9.20% 2.75%

Growth

Metric ECL LIN Specialty Chemicals median
Revenue growth (TTM) 7.11% 6.63% 4.51%
EPS growth (last fiscal year) (1.22%) 7.27% —
Revenue growth, 5-year CAGR 6.40% 4.52% 6.30%
Net income growth, 5-year CAGR 0.00% 22.50% 0.00%

Health

Metric ECL LIN Specialty Chemicals median
Debt to equity 1.31 0.69 0.54
Current ratio 1.84 0.88 1.94
Net debt to EBITDA 2.04 1.73 2.03

Dividend

Metric ECL LIN Specialty Chemicals median
Dividend yield 1.06% 1.33% 1.69%
Payout ratio 0.51 0.43 0.25

Size

Metric ECL LIN Specialty Chemicals median
Market cap 77.19b 214.90b 2.43b

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