Flowserve Corporation (FLS) vs Gates Industrial Corporation PLC (GTES)

Flowserve Corporation and Gates Industrial Corporation PLC are both Specialty Industrial Machinery companies. Flowserve Corporation is the larger, with a market value of $9.7B against $6.7B — 1.5× the size. Gates Industrial Corporation PLC trades at the lower P/E: 18.9× against 25.6×. Gates Industrial Corporation PLC grew revenue faster over the last twelve months: 3.34% against −0.26%. Gates Industrial Corporation PLC has the higher net margin (10.4% vs 8.01%) and the lower return on invested capital (5.42% vs 6.57%). Across the 22 metrics below, Gates Industrial Corporation PLC leads on 16 and Flowserve Corporation on 6.

Valuation

Metric FLS GTES Specialty Industrial Machinery median
P/E 25.63 18.92 29.62
P/S 2.03 1.94 2.77
P/B 4.05 1.75 3.04
Price to free cash flow 21.81 17.93 23.81
EV/EBITDA 20.32 12.06 16.05
EV/Sales 2.34 2.36 2.94
Earnings yield 3.90% 5.29% 3.08%
Free cash flow yield 4.58% 5.58% 3.12%

Profitability

Metric FLS GTES Specialty Industrial Machinery median
Gross margin 33.88% 39.69% 35.90%
Operating margin 9.44% 13.27% 11.22%
Net margin 8.01% 10.37% 7.80%
Free cash flow margin 9.32% 10.84% 9.51%
Return on equity 16.12% 9.69% 11.10%
Return on assets 6.19% 4.98% 4.63%
Return on invested capital 6.57% 5.42% 5.37%

Growth

Metric FLS GTES Specialty Industrial Machinery median
Revenue growth (TTM) (0.26%) 3.34% 6.45%
EPS growth (last fiscal year) 23.36% 29.73% —
Revenue growth, 5-year CAGR 4.87% 4.27% 8.31%
Net income growth, 5-year CAGR 21.56% 25.92% 5.04%

Health

Metric FLS GTES Specialty Industrial Machinery median
Debt to equity 0.92 0.59 0.35
Current ratio 2.15 3.24 2.11
Net debt to EBITDA 1.58 2.18 1.32

Dividend

Metric FLS GTES Specialty Industrial Machinery median
Dividend yield 1.99% — 1.12%
Payout ratio 0.44 0.00 0.17

Size

Metric FLS GTES Specialty Industrial Machinery median
Market cap 9.67b 6.65b 1.97b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack