IDEX Corporation (IEX) vs Xylem Inc. (XYL)

IDEX Corporation and Xylem Inc. are both Specialty Industrial Machinery companies. Xylem Inc. is the larger, with a market value of $24.2B against $16.8B — 1.4× the size. Xylem Inc. trades at the lower P/E: 24.4× against 33.0×. IDEX Corporation grew revenue faster over the last twelve months: 7.32% against 4.54%. IDEX Corporation has the higher net margin (14.5% vs 11.2%) and the higher return on invested capital (8.84% vs 6.84%). Both pay a dividend; IDEX Corporation yields more (1.15% vs 1.01%). Across the 23 metrics below, Xylem Inc. leads on 13 and IDEX Corporation on 10.

Valuation

Metric IEX XYL Specialty Industrial Machinery median
P/E 33.01 24.44 29.62
P/S 4.75 2.66 2.77
P/B 4.25 2.33 3.04
Price to free cash flow 26.54 24.67 23.81
EV/EBITDA 19.14 13.73 16.05
EV/Sales 5.09 2.84 2.94
Earnings yield 3.03% 4.09% 3.08%
Free cash flow yield 3.77% 4.05% 3.12%

Profitability

Metric IEX XYL Specialty Industrial Machinery median
Gross margin 44.70% 39.24% 35.90%
Operating margin 20.69% 14.48% 11.22%
Net margin 14.49% 11.15% 7.80%
Free cash flow margin 17.89% 10.77% 9.51%
Return on equity 12.96% 9.47% 11.10%
Return on assets 7.53% 5.90% 4.63%
Return on invested capital 8.84% 6.84% 5.37%

Growth

Metric IEX XYL Specialty Industrial Machinery median
Revenue growth (TTM) 7.32% 4.54% 6.45%
EPS growth (last fiscal year) (3.46%) 7.40% —
Revenue growth, 5-year CAGR 8.01% 13.13% 8.31%
Net income growth, 5-year CAGR 5.04% 30.38% 5.04%

Health

Metric IEX XYL Specialty Industrial Machinery median
Debt to equity 0.46 0.28 0.35
Current ratio 3.05 1.61 2.11
Net debt to EBITDA 1.37 0.26 1.32

Dividend

Metric IEX XYL Specialty Industrial Machinery median
Dividend yield 1.15% 1.01% 1.12%
Payout ratio 0.40 0.67 0.17

Size

Metric IEX XYL Specialty Industrial Machinery median
Market cap 16.84b 24.19b 1.97b

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