Forgent Power Solutions, Inc. (FPS) vs Vertiv Holdings Co. (VRT)

Forgent Power Solutions, Inc. and Vertiv Holdings Co. are both Electrical Equipment & Parts companies. Vertiv Holdings Co. is the larger, with a market value of $68.1B against $5.5B — 12.3× the size. Forgent Power Solutions, Inc. grew revenue faster over the last twelve months: 88.5% against 35.3%. Vertiv Holdings Co. has the higher net margin (16.0% vs 5.76%) and the higher return on invested capital (35.0% vs 9.87%). Across the 16 metrics below, Vertiv Holdings Co. leads on 10 and Forgent Power Solutions, Inc. on 6.

Valuation

Metric FPS VRT Electrical Equipment & Parts median
P/E — 32.52 24.14
P/S 3.01 5.21 2.33
P/B 6.36 12.41 2.49
Price to free cash flow n/m 21.75 22.24
EV/EBITDA 18.12 22.02 12.18
EV/Sales 3.35 5.15 1.79
Earnings yield — 3.08% (6.07%)
Free cash flow yield (0.16%) 4.60% (5.34%)

Profitability

Metric FPS VRT Electrical Equipment & Parts median
Gross margin 35.04% 38.12% 29.92%
Operating margin 12.85% 20.14% 0.00%
Net margin 5.76% 15.99% 0.00%
Free cash flow margin (0.48%) 23.94% 0.00%
Return on equity 13.15% 46.57% 0.00%
Return on assets 4.34% 14.47% 0.00%
Return on invested capital 9.87% 34.99% 0.00%

Growth

Metric FPS VRT Electrical Equipment & Parts median
Revenue growth (TTM) 88.54% 35.27% 10.59%
EPS growth (last fiscal year) — 166.41% 24.08%
Revenue growth, 5-year CAGR — 18.54% 9.92%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric FPS VRT Electrical Equipment & Parts median
Debt to equity 0.87 0.53 0.15
Current ratio 1.54 1.39 2.34
Net debt to EBITDA 1.85 0.51 0.26

Dividend

Metric FPS VRT Electrical Equipment & Parts median
Dividend yield — 0.14% 0.33%
Payout ratio — 0.05 0.09

Size

Metric FPS VRT Electrical Equipment & Parts median
Market cap 5.54b 68.05b 159.94m

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