Flowserve Corporation (FLS) vs Generac Holdings Inc. (GNRC)

Flowserve Corporation and Generac Holdings Inc. are both Specialty Industrial Machinery companies. Flowserve Corporation and Generac Holdings Inc. are of similar size ($10.2B and $9.9B). Generac Holdings Inc. trades at the lower P/E: 33.7× against 39.1×. Generac Holdings Inc. grew revenue faster over the last twelve months: 6.13% against 0.21%. Generac Holdings Inc. has the higher net margin (6.52% vs 5.42%) and the lower return on invested capital (7.58% vs 7.90%). Across the 22 metrics below, Generac Holdings Inc. leads on 13 and Flowserve Corporation on 9.

Valuation

Metric FLS GNRC Specialty Industrial Machinery median
P/E 39.15 33.66 25.64
P/S 2.12 2.20 2.81
P/B 4.18 3.37 2.99
Price to free cash flow 57.24 24.34 23.82
EV/EBITDA 18.07 15.77 15.15
EV/Sales 2.40 2.40 2.77
Earnings yield 2.55% 2.97% 3.07%
Free cash flow yield 1.75% 4.11% 3.67%

Profitability

Metric FLS GNRC Specialty Industrial Machinery median
Gross margin 34.15% 39.92% 35.46%
Operating margin 10.95% 10.37% 10.04%
Net margin 5.42% 6.52% 7.24%
Free cash flow margin 3.70% 9.04% 9.04%
Return on equity 10.82% 10.64% 10.73%
Return on assets 4.18% 5.13% 4.51%
Return on invested capital 7.90% 7.58% 5.00%

Growth

Metric FLS GNRC Specialty Industrial Machinery median
Revenue growth (TTM) 0.21% 6.13% 6.59%
EPS growth (last fiscal year) 23.36% (50.09%) 5.97%
Revenue growth, 5-year CAGR 4.87% 11.11% 8.53%
Net income growth, 5-year CAGR 21.56% (14.57%) 6.58%

Health

Metric FLS GNRC Specialty Industrial Machinery median
Debt to equity 0.86 0.44 0.33
Current ratio 2.10 1.97 2.08
Net debt to EBITDA 1.58 2.04 1.32

Dividend

Metric FLS GNRC Specialty Industrial Machinery median
Dividend yield 1.11% — 1.11%
Payout ratio 0.44 — 0.31

Size

Metric FLS GNRC Specialty Industrial Machinery median
Market cap 9.90b 10.17b 2.19b

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