IDEX Corporation (IEX) vs Pentair plc (PNR)

IDEX Corporation and Pentair plc are both Specialty Industrial Machinery companies. IDEX Corporation is the larger, with a market value of $16.4B against $11.1B — 1.5× the size. Pentair plc trades at the lower P/E: 18.4× against 30.8×. IDEX Corporation grew revenue faster over the last twelve months: 6.93% against −3.93%. Pentair plc has the higher net margin (15.4% vs 14.7%) and the lower return on invested capital (9.22% vs 9.24%). Both pay a dividend; Pentair plc yields more (1.55% vs 1.30%). Across the 23 metrics below, Pentair plc leads on 15 and IDEX Corporation on 8.

Valuation

Metric IEX PNR Specialty Industrial Machinery median
P/E 30.78 18.41 25.64
P/S 4.48 2.81 2.81
P/B 4.08 2.88 2.99
Price to free cash flow 24.56 17.15 23.82
EV/EBITDA 17.93 13.88 15.15
EV/Sales 4.79 3.16 2.77
Earnings yield 3.25% 5.43% 3.07%
Free cash flow yield 4.07% 5.83% 3.67%

Profitability

Metric IEX PNR Specialty Industrial Machinery median
Gross margin 44.87% 41.23% 35.46%
Operating margin 20.88% 19.60% 10.04%
Net margin 14.65% 15.44% 7.24%
Free cash flow margin 18.24% 16.37% 9.04%
Return on equity 13.35% 16.02% 10.73%
Return on assets 7.74% 9.12% 4.51%
Return on invested capital 9.24% 9.22% 5.00%

Growth

Metric IEX PNR Specialty Industrial Machinery median
Revenue growth (TTM) 6.93% (3.93%) 6.59%
EPS growth (last fiscal year) (3.46%) 5.88% 5.97%
Revenue growth, 5-year CAGR 8.01% 6.71% 8.53%
Net income growth, 5-year CAGR 5.04% 12.76% 6.58%

Health

Metric IEX PNR Specialty Industrial Machinery median
Debt to equity 0.44 0.38 0.33
Current ratio 2.78 1.47 2.08
Net debt to EBITDA 1.37 1.58 1.32

Dividend

Metric IEX PNR Specialty Industrial Machinery median
Dividend yield 1.30% 1.55% 1.11%
Payout ratio 0.40 0.29 0.31

Size

Metric IEX PNR Specialty Industrial Machinery median
Market cap 16.35b 11.14b 2.19b

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