ITT Inc. (ITT) vs Nordson Corporation (NDSN)

ITT Inc. and Nordson Corporation are both Specialty Industrial Machinery companies. ITT Inc. and Nordson Corporation are of similar size ($19.1B and $18.0B). Nordson Corporation trades at the lower P/E: 32.8× against 40.3×. ITT Inc. grew revenue faster over the last twelve months: 28.1% against 7.02%. Nordson Corporation has the higher net margin (18.6% vs 8.90%) and the higher return on invested capital (10.2% vs 5.35%). Both pay a dividend; Nordson Corporation yields more (1.07% vs 1.02%). Across the 23 metrics below, Nordson Corporation leads on 16 and ITT Inc. on 7.

Valuation

Metric ITT NDSN Specialty Industrial Machinery median
P/E 40.29 32.81 29.62
P/S 3.89 6.09 2.77
P/B 3.83 5.55 3.04
Price to free cash flow 36.19 25.03 23.81
EV/EBITDA 23.97 20.85 16.05
EV/Sales 4.55 6.64 2.94
Earnings yield 2.48% 3.05% 3.08%
Free cash flow yield 2.76% 4.00% 3.12%

Profitability

Metric ITT NDSN Specialty Industrial Machinery median
Gross margin 34.98% 55.29% 35.90%
Operating margin 14.35% 26.88% 11.22%
Net margin 8.90% 18.63% 7.80%
Free cash flow margin 10.75% 24.33% 9.51%
Return on equity 11.43% 17.76% 11.10%
Return on assets 5.25% 9.29% 4.63%
Return on invested capital 5.35% 10.23% 5.37%

Growth

Metric ITT NDSN Specialty Industrial Machinery median
Revenue growth (TTM) 28.07% 7.02% 6.45%
EPS growth (last fiscal year) (3.02%) 4.93% —
Revenue growth, 5-year CAGR 9.71% 5.65% 8.31%
Net income growth, 5-year CAGR 46.43% 14.19% 5.04%

Health

Metric ITT NDSN Specialty Industrial Machinery median
Debt to equity 0.78 0.53 0.35
Current ratio 1.26 1.82 2.11
Net debt to EBITDA (1.16) 2.20 1.32

Dividend

Metric ITT NDSN Specialty Industrial Machinery median
Dividend yield 1.02% 1.07% 1.12%
Payout ratio 0.22 0.30 0.17

Size

Metric ITT NDSN Specialty Industrial Machinery median
Market cap 19.13b 18.01b 1.97b

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