Eaton Corporation, PLC (ETN) vs GE Vernova Inc. (GEV)

Eaton Corporation, PLC and GE Vernova Inc. are both Specialty Industrial Machinery companies. GE Vernova Inc. is the larger, with a market value of $257.2B against $172.5B — 1.5× the size. GE Vernova Inc. trades at the lower P/E: 27.1× against 44.6×. Eaton Corporation, PLC grew revenue faster over the last twelve months: 15.5% against 13.0%. GE Vernova Inc. has the higher net margin (23.0% vs 12.8%) and the higher return on invested capital (40.4% vs 8.71%). Across the 20 metrics below, GE Vernova Inc. leads on 13 and Eaton Corporation, PLC on 7.

Valuation

Metric ETN GEV Specialty Industrial Machinery median
P/E 44.62 27.08 29.62
P/S 5.69 6.20 2.77
P/B 8.42 19.57 3.04
Price to free cash flow 42.73 20.30 23.81
EV/EBITDA 29.04 82.00 16.05
EV/Sales 6.29 5.95 2.94
Earnings yield 2.24% 3.69% 3.08%
Free cash flow yield 2.34% 4.93% 3.12%

Profitability

Metric ETN GEV Specialty Industrial Machinery median
Gross margin 35.90% 20.21% 35.90%
Operating margin 17.71% 4.36% 11.22%
Net margin 12.75% 23.03% 7.80%
Free cash flow margin 13.32% 30.56% 9.51%
Return on equity 19.66% 82.64% 11.10%
Return on assets 7.92% 14.24% 4.63%
Return on invested capital 8.71% 40.38% 5.37%

Growth

Metric ETN GEV Specialty Industrial Machinery median
Revenue growth (TTM) 15.53% 12.98% 6.45%
EPS growth (last fiscal year) 10.00% 217.03% —
Revenue growth, 5-year CAGR 8.98% — 8.31%
Net income growth, 5-year CAGR 23.72% — 5.04%

Health

Metric ETN GEV Specialty Industrial Machinery median
Debt to equity 0.91 0.21 0.35
Current ratio 1.24 0.85 2.11
Net debt to EBITDA 1.46 (3.95) 1.32

Dividend

Metric ETN GEV Specialty Industrial Machinery median
Dividend yield 1.42% — 1.12%
Payout ratio 0.49 — 0.17

Size

Metric ETN GEV Specialty Industrial Machinery median
Market cap 172.54b 257.17b 1.97b

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