Fortive Corporation (FTV) vs Garmin Ltd. (GRMN)

Fortive Corporation and Garmin Ltd. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $57.3B against $16.7B — 3.4× the size. Garmin Ltd. trades at the lower P/E: 30.2× against 32.6×. Fortive Corporation grew revenue faster over the last twelve months: 43.2% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 12.4%) and the higher return on invested capital (20.8% vs 5.34%). Both pay a dividend; Garmin Ltd. yields more (2.42% vs 0.38%). Across the 23 metrics below, Garmin Ltd. leads on 14 and Fortive Corporation on 9.

Valuation

Metric FTV GRMN Scientific & Technical Instruments median
P/E 32.61 30.17 35.93
P/S 3.95 7.39 4.46
P/B 2.81 6.28 3.00
Price to free cash flow 18.20 35.54 24.96
EV/EBITDA 17.09 23.39 19.60
EV/Sales 4.89 7.05 4.98
Earnings yield 3.07% 3.31% 0.53%
Free cash flow yield 5.50% 2.81% 1.12%

Profitability

Metric FTV GRMN Scientific & Technical Instruments median
Gross margin 63.23% 60.08% 45.75%
Operating margin 18.23% 27.61% 7.34%
Net margin 12.38% 24.47% 1.56%
Free cash flow margin 21.72% 20.85% 5.84%
Return on equity 6.49% 21.89% 2.87%
Return on assets 3.58% 17.26% 0.99%
Return on invested capital 5.34% 20.81% 3.88%

Growth

Metric FTV GRMN Scientific & Technical Instruments median
Revenue growth (TTM) 43.22% 13.51% 11.28%
EPS growth (last fiscal year) (26.69%) 17.67% —
Revenue growth, 5-year CAGR (2.14%) 11.59% 7.89%
Net income growth, 5-year CAGR (17.81%) 10.89% 0.00%

Health

Metric FTV GRMN Scientific & Technical Instruments median
Debt to equity 0.58 0.00 0.00
Current ratio 1.24 3.03 2.24
Net debt to EBITDA 2.44 (1.33) 0.44

Dividend

Metric FTV GRMN Scientific & Technical Instruments median
Dividend yield 0.38% 2.42% 0.72%
Payout ratio 0.13 0.56 0.00

Size

Metric FTV GRMN Scientific & Technical Instruments median
Market cap 16.74b 57.28b 483.67m

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