Flowserve Corporation (FLS) vs Graco Inc. (GGG)

Flowserve Corporation and Graco Inc. are both Specialty Industrial Machinery companies. Graco Inc. is the larger, with a market value of $12.5B against $9.7B — 1.3× the size. Graco Inc. trades at the lower P/E: 24.0× against 25.6×. Graco Inc. grew revenue faster over the last twelve months: 4.58% against −0.26%. Graco Inc. has the higher net margin (23.5% vs 8.01%) and the higher return on invested capital (19.7% vs 6.57%). Both pay a dividend; Flowserve Corporation yields more (1.99% vs 1.13%). Across the 23 metrics below, Graco Inc. leads on 17 and Flowserve Corporation on 6.

Valuation

Metric FLS GGG Specialty Industrial Machinery median
P/E 25.63 24.03 29.62
P/S 2.03 5.62 2.77
P/B 4.05 5.05 3.04
Price to free cash flow 21.81 20.24 23.81
EV/EBITDA 20.32 16.49 16.05
EV/Sales 2.34 5.41 2.94
Earnings yield 3.90% 4.16% 3.08%
Free cash flow yield 4.58% 4.94% 3.12%

Profitability

Metric FLS GGG Specialty Industrial Machinery median
Gross margin 33.88% 52.64% 35.90%
Operating margin 9.44% 28.06% 11.22%
Net margin 8.01% 23.53% 7.80%
Free cash flow margin 9.32% 27.78% 9.51%
Return on equity 16.12% 21.24% 11.10%
Return on assets 6.19% 17.28% 4.63%
Return on invested capital 6.57% 19.72% 5.37%

Growth

Metric FLS GGG Specialty Industrial Machinery median
Revenue growth (TTM) (0.26%) 4.58% 6.45%
EPS growth (last fiscal year) 23.36% 9.22% —
Revenue growth, 5-year CAGR 4.87% 6.27% 8.31%
Net income growth, 5-year CAGR 21.56% 9.57% 5.04%

Health

Metric FLS GGG Specialty Industrial Machinery median
Debt to equity 0.92 0.00 0.35
Current ratio 2.15 2.99 2.11
Net debt to EBITDA 1.58 (0.85) 1.32

Dividend

Metric FLS GGG Specialty Industrial Machinery median
Dividend yield 1.99% 1.13% 1.12%
Payout ratio 0.44 0.30 0.17

Size

Metric FLS GGG Specialty Industrial Machinery median
Market cap 9.67b 12.49b 1.97b

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