Franklin Electric Co., Inc. (FELE) vs The Middleby Corporation (MIDD)

Franklin Electric Co., Inc. and The Middleby Corporation are both Specialty Industrial Machinery companies. The Middleby Corporation is the larger, with a market value of $5.9B against $4.2B — 1.4× the size. The Middleby Corporation has negative trailing earnings, so its P/E is not meaningful; Franklin Electric Co., Inc. trades at 21.3×. The Middleby Corporation grew revenue faster over the last twelve months: 8.43% against 7.28%. Franklin Electric Co., Inc. has the higher net margin (8.80% vs −13.9%) and the higher return on invested capital (9.45% vs 8.97%). Across the 21 metrics below, Franklin Electric Co., Inc. leads on 12 and The Middleby Corporation on 9.

Valuation

Metric FELE MIDD Specialty Industrial Machinery median
P/E 21.25 n/m 25.64
P/S 1.87 1.74 2.81
P/B 2.93 2.67 2.99
Price to free cash flow 21.70 12.25 23.82
EV/EBITDA 13.27 11.30 15.15
EV/Sales 2.05 2.28 2.77
Earnings yield 4.71% (7.12%) 3.07%
Free cash flow yield 4.61% 8.16% 3.67%

Profitability

Metric FELE MIDD Specialty Industrial Machinery median
Gross margin 35.39% 38.40% 35.46%
Operating margin 12.36% 17.07% 10.04%
Net margin 8.80% (13.91%) 7.24%
Free cash flow margin 8.63% 14.22% 9.04%
Return on equity 14.39% (16.16%) 10.73%
Return on assets 8.60% (7.42%) 4.51%
Return on invested capital 9.45% 8.97% 5.00%

Growth

Metric FELE MIDD Specialty Industrial Machinery median
Revenue growth (TTM) 7.28% 8.43% 6.59%
EPS growth (last fiscal year) (16.58%) (167.34%) 5.97%
Revenue growth, 5-year CAGR 11.31% 4.96% 8.53%
Net income growth, 5-year CAGR 7.98% 0.00% 6.58%

Health

Metric FELE MIDD Specialty Industrial Machinery median
Debt to equity 0.39 0.90 0.33
Current ratio 2.33 1.99 2.08
Net debt to EBITDA 0.20 2.87 1.32

Dividend

Metric FELE MIDD Specialty Industrial Machinery median
Dividend yield 1.17% — 1.11%
Payout ratio 0.25 — 0.31

Size

Metric FELE MIDD Specialty Industrial Machinery median
Market cap 4.24b 5.89b 2.19b

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