Ingersoll Rand Inc. (IR) vs Xylem Inc. (XYL)

Ingersoll Rand Inc. and Xylem Inc. are both Specialty Industrial Machinery companies. Ingersoll Rand Inc. is the larger, with a market value of $29.0B against $24.2B — 1.2× the size. Xylem Inc. trades at the lower P/E: 24.4× against 31.1×. Ingersoll Rand Inc. grew revenue faster over the last twelve months: 7.85% against 4.54%. Ingersoll Rand Inc. has the higher net margin (12.1% vs 11.2%) and the lower return on invested capital (6.48% vs 6.84%). Both pay a dividend; Xylem Inc. yields more (1.01% vs 0.05%). Across the 23 metrics below, Xylem Inc. leads on 14 and Ingersoll Rand Inc. on 9.

Valuation

Metric IR XYL Specialty Industrial Machinery median
P/E 31.05 24.44 29.62
P/S 3.73 2.66 2.77
P/B 2.90 2.33 3.04
Price to free cash flow 24.23 24.67 23.81
EV/EBITDA 16.81 13.73 16.05
EV/Sales 4.19 2.84 2.94
Earnings yield 3.22% 4.09% 3.08%
Free cash flow yield 4.13% 4.05% 3.12%

Profitability

Metric IR XYL Specialty Industrial Machinery median
Gross margin 42.82% 39.24% 35.90%
Operating margin 18.08% 14.48% 11.22%
Net margin 12.08% 11.15% 7.80%
Free cash flow margin 15.42% 10.77% 9.51%
Return on equity 9.40% 9.47% 11.10%
Return on assets 5.29% 5.90% 4.63%
Return on invested capital 6.48% 6.84% 5.37%

Growth

Metric IR XYL Specialty Industrial Machinery median
Revenue growth (TTM) 7.85% 4.54% 6.45%
EPS growth (last fiscal year) (29.61%) 7.40% —
Revenue growth, 5-year CAGR 14.00% 13.13% 8.31%
Net income growth, 5-year CAGR 0.00% 30.38% 5.04%

Health

Metric IR XYL Specialty Industrial Machinery median
Debt to equity 0.47 0.28 0.35
Current ratio 1.62 1.61 2.11
Net debt to EBITDA 1.84 0.26 1.32

Dividend

Metric IR XYL Specialty Industrial Machinery median
Dividend yield 0.05% 1.01% 1.12%
Payout ratio 0.05 0.67 0.17

Size

Metric IR XYL Specialty Industrial Machinery median
Market cap 29.01b 24.19b 1.97b

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