Eaton Corporation, PLC (ETN) vs Parker-Hannifin Corporation (PH)

Eaton Corporation, PLC and Parker-Hannifin Corporation are both Specialty Industrial Machinery companies. Eaton Corporation, PLC is the larger, with a market value of $127.1B against $112.5B — 1.1× the size. Parker-Hannifin Corporation trades at the lower P/E: 30.5× against 32.6×. Eaton Corporation, PLC grew revenue faster over the last twelve months: 20.1% against 11.9%. Parker-Hannifin Corporation has the higher net margin (16.6% vs 12.2%) and the lower return on invested capital (0.00% vs 8.94%). Both pay a dividend; Eaton Corporation, PLC yields more (1.01% vs 0.85%). Across the 23 metrics below, Eaton Corporation, PLC leads on 12 and Parker-Hannifin Corporation on 11.

Valuation

Metric ETN PH Specialty Industrial Machinery median
P/E 32.60 30.46 25.64
P/S 3.98 5.06 2.81
P/B 6.05 7.06 2.99
Price to free cash flow 32.84 28.96 23.82
EV/EBITDA 20.91 22.51 15.15
EV/Sales 4.53 5.60 2.77
Earnings yield 3.07% 3.28% 3.07%
Free cash flow yield 3.04% 3.45% 3.67%

Profitability

Metric ETN PH Specialty Industrial Machinery median
Gross margin 35.05% 37.74% 35.46%
Operating margin 17.31% 0.00% 10.04%
Net margin 12.18% 16.62% 7.24%
Free cash flow margin 12.10% 19.34% 9.04%
Return on equity 19.52% 24.95% 10.73%
Return on assets 7.94% 10.26% 4.51%
Return on invested capital 8.94% 0.00% 5.00%

Growth

Metric ETN PH Specialty Industrial Machinery median
Revenue growth (TTM) 20.09% 11.87% 6.59%
EPS growth (last fiscal year) 10.00% 5.01% 5.97%
Revenue growth, 5-year CAGR 8.98% 8.42% 8.53%
Net income growth, 5-year CAGR 23.72% 15.88% 6.58%

Health

Metric ETN PH Specialty Industrial Machinery median
Debt to equity 0.88 0.79 0.33
Current ratio 1.23 0.94 2.08
Net debt to EBITDA 1.46 1.12 1.32

Dividend

Metric ETN PH Specialty Industrial Machinery median
Dividend yield 1.01% 0.85% 1.11%
Payout ratio 0.33 0.26 0.31

Size

Metric ETN PH Specialty Industrial Machinery median
Market cap 127.05b 112.53b 2.19b

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