Fortive Corporation (FTV) vs Trimble Inc. (TRMB)

Fortive Corporation and Trimble Inc. are both Scientific & Technical Instruments companies. Fortive Corporation is the larger, with a market value of $19.5B against $12.5B — 1.6× the size. Trimble Inc. has negative trailing earnings, so its P/E is not meaningful; Fortive Corporation trades at 30.7×. Fortive Corporation grew revenue faster over the last twelve months: 6.98% against 6.88%. Fortive Corporation has the higher net margin (14.8% vs −4.08%) and the lower return on invested capital (5.93% vs 6.30%). Across the 21 metrics below, Trimble Inc. leads on 12 and Fortive Corporation on 9.

Valuation

Metric FTV TRMB Scientific & Technical Instruments median
P/E 30.73 n/m 28.21
P/S 4.46 3.27 4.46
P/B 3.29 2.53 3.10
Price to free cash flow 18.06 15.91 24.15
EV/EBITDA 18.00 16.61 18.28
EV/Sales 5.38 3.61 4.64
Earnings yield 3.25% (1.27%) 0.68%
Free cash flow yield 5.54% 6.28% 1.98%

Profitability

Metric FTV TRMB Scientific & Technical Instruments median
Gross margin 63.47% 69.60% 47.24%
Operating margin 19.63% 16.48% 8.96%
Net margin 14.83% (4.08%) 1.92%
Free cash flow margin 24.69% 20.74% 10.59%
Return on equity 10.46% (2.92%) 2.66%
Return on assets 5.57% (1.79%) 1.12%
Return on invested capital 5.93% 6.30% 4.79%

Growth

Metric FTV TRMB Scientific & Technical Instruments median
Revenue growth (TTM) 6.98% 6.88% 9.26%
EPS growth (last fiscal year) (26.69%) (71.10%) 13.24%
Revenue growth, 5-year CAGR (2.14%) 2.65% 7.89%
Net income growth, 5-year CAGR (17.81%) 1.69% 0.00%

Health

Metric FTV TRMB Scientific & Technical Instruments median
Debt to equity 0.59 0.31 0.00
Current ratio 1.23 0.93 2.30
Net debt to EBITDA 2.44 1.44 0.45

Dividend

Metric FTV TRMB Scientific & Technical Instruments median
Dividend yield 0.38% — 0.62%
Payout ratio 0.12 — 0.22

Size

Metric FTV TRMB Scientific & Technical Instruments median
Market cap 19.47b 12.51b 549.07m

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