Flowserve Corporation (FLS) vs Regal Rexnord Corporation (RRX)

Flowserve Corporation and Regal Rexnord Corporation are both Specialty Industrial Machinery companies. Flowserve Corporation and Regal Rexnord Corporation are of similar size ($10.2B and $9.7B). Flowserve Corporation trades at the lower P/E: 25.6× against 32.0×. Regal Rexnord Corporation grew revenue faster over the last twelve months: 3.50% against −0.26%. Flowserve Corporation has the higher net margin (8.01% vs 5.35%) and the higher return on invested capital (6.57% vs 3.98%). Both pay a dividend; Flowserve Corporation yields more (1.99% vs 1.00%). Across the 23 metrics below, Regal Rexnord Corporation leads on 12 and Flowserve Corporation on 11.

Valuation

Metric FLS RRX Specialty Industrial Machinery median
P/E 25.63 32.00 29.62
P/S 2.03 1.72 2.77
P/B 4.05 1.50 3.04
Price to free cash flow 21.81 21.76 23.81
EV/EBITDA 20.32 11.95 16.05
EV/Sales 2.34 2.41 2.94
Earnings yield 3.90% 3.12% 3.08%
Free cash flow yield 4.58% 4.60% 3.12%

Profitability

Metric FLS RRX Specialty Industrial Machinery median
Gross margin 33.88% 37.75% 35.90%
Operating margin 9.44% 11.67% 11.22%
Net margin 8.01% 5.35% 7.80%
Free cash flow margin 9.32% 7.89% 9.51%
Return on equity 16.12% 4.75% 11.10%
Return on assets 6.19% 2.34% 4.63%
Return on invested capital 6.57% 3.98% 5.37%

Growth

Metric FLS RRX Specialty Industrial Machinery median
Revenue growth (TTM) (0.26%) 3.50% 6.45%
EPS growth (last fiscal year) 23.36% 42.86% —
Revenue growth, 5-year CAGR 4.87% 15.34% 8.31%
Net income growth, 5-year CAGR 21.56% 8.29% 5.04%

Health

Metric FLS RRX Specialty Industrial Machinery median
Debt to equity 0.92 0.67 0.35
Current ratio 2.15 2.28 2.11
Net debt to EBITDA 1.58 3.57 1.32

Dividend

Metric FLS RRX Specialty Industrial Machinery median
Dividend yield 1.99% 1.00% 1.12%
Payout ratio 0.44 0.38 0.17

Size

Metric FLS RRX Specialty Industrial Machinery median
Market cap 9.67b 10.16b 1.97b

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