Gates Industrial Corporation PLC (GTES) vs Pentair plc (PNR)

Gates Industrial Corporation PLC and Pentair plc are both Specialty Industrial Machinery companies. Pentair plc is the larger, with a market value of $8.5B against $6.7B — 1.3× the size. Pentair plc trades at the lower P/E: 13.4× against 18.9×. Gates Industrial Corporation PLC grew revenue faster over the last twelve months: 3.34% against −2.15%. Pentair plc has the higher net margin (16.2% vs 10.4%) and the higher return on invested capital (9.66% vs 5.42%). Across the 22 metrics below, Pentair plc leads on 15 and Gates Industrial Corporation PLC on 7.

Valuation

Metric GTES PNR Specialty Industrial Machinery median
P/E 18.92 13.38 29.62
P/S 1.94 2.15 2.77
P/B 1.75 2.30 3.04
Price to free cash flow 17.93 12.77 23.81
EV/EBITDA 12.06 10.86 16.05
EV/Sales 2.36 2.53 2.94
Earnings yield 5.29% 7.47% 3.08%
Free cash flow yield 5.58% 7.83% 3.12%

Profitability

Metric GTES PNR Specialty Industrial Machinery median
Gross margin 39.69% 41.35% 35.90%
Operating margin 13.27% 20.27% 11.22%
Net margin 10.37% 16.24% 7.80%
Free cash flow margin 10.84% 16.84% 9.51%
Return on equity 9.69% 17.55% 11.10%
Return on assets 4.98% 9.88% 4.63%
Return on invested capital 5.42% 9.66% 5.37%

Growth

Metric GTES PNR Specialty Industrial Machinery median
Revenue growth (TTM) 3.34% (2.15%) 6.45%
EPS growth (last fiscal year) 29.73% 5.88% —
Revenue growth, 5-year CAGR 4.27% 6.71% 8.31%
Net income growth, 5-year CAGR 25.92% 12.76% 5.04%

Health

Metric GTES PNR Specialty Industrial Machinery median
Debt to equity 0.59 0.43 0.35
Current ratio 3.24 1.45 2.11
Net debt to EBITDA 2.18 1.58 1.32

Dividend

Metric GTES PNR Specialty Industrial Machinery median
Dividend yield — 1.09% 1.12%
Payout ratio 0.00 0.29 0.17

Size

Metric GTES PNR Specialty Industrial Machinery median
Market cap 6.65b 8.49b 1.97b

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