Emerson Electric Co. (EMR) vs Eaton Corporation, PLC (ETN)

Emerson Electric Co. and Eaton Corporation, PLC are both Specialty Industrial Machinery companies. Eaton Corporation, PLC is the larger, with a market value of $172.5B against $87.4B — 2.0× the size. Emerson Electric Co. trades at the lower P/E: 34.6× against 44.6×. Eaton Corporation, PLC grew revenue faster over the last twelve months: 15.5% against 4.83%. Emerson Electric Co. has the higher net margin (13.8% vs 12.8%) and the higher return on invested capital (9.33% vs 8.71%). Both pay a dividend; Emerson Electric Co. yields more (2.08% vs 1.42%). Across the 23 metrics below, Emerson Electric Co. leads on 16 and Eaton Corporation, PLC on 7.

Valuation

Metric EMR ETN Specialty Industrial Machinery median
P/E 34.62 44.62 29.62
P/S 4.74 5.69 2.77
P/B 4.34 8.42 3.04
Price to free cash flow 25.55 42.73 23.81
EV/EBITDA 16.13 29.04 16.05
EV/Sales 5.33 6.29 2.94
Earnings yield 2.89% 2.24% 3.08%
Free cash flow yield 3.91% 2.34% 3.12%

Profitability

Metric EMR ETN Specialty Industrial Machinery median
Gross margin 53.16% 35.90% 35.90%
Operating margin 25.10% 17.71% 11.22%
Net margin 13.83% 12.75% 7.80%
Free cash flow margin 18.57% 13.32% 9.51%
Return on equity 12.80% 19.66% 11.10%
Return on assets 6.09% 7.92% 4.63%
Return on invested capital 9.33% 8.71% 5.37%

Growth

Metric EMR ETN Specialty Industrial Machinery median
Revenue growth (TTM) 4.83% 15.53% 6.45%
EPS growth (last fiscal year) 17.78% 10.00% —
Revenue growth, 5-year CAGR 1.43% 8.98% 8.31%
Net income growth, 5-year CAGR 3.14% 23.72% 5.04%

Health

Metric EMR ETN Specialty Industrial Machinery median
Debt to equity 0.64 0.91 0.35
Current ratio 0.90 1.24 2.11
Net debt to EBITDA 1.95 1.46 1.32

Dividend

Metric EMR ETN Specialty Industrial Machinery median
Dividend yield 2.08% 1.42% 1.12%
Payout ratio 0.37 0.49 0.17

Size

Metric EMR ETN Specialty Industrial Machinery median
Market cap 87.37b 172.54b 1.97b

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