ITT Inc. (ITT) vs Xylem Inc. (XYL)

ITT Inc. and Xylem Inc. are both Specialty Industrial Machinery companies. Xylem Inc. is the larger, with a market value of $24.2B against $19.1B — 1.3× the size. Xylem Inc. trades at the lower P/E: 24.4× against 40.3×. ITT Inc. grew revenue faster over the last twelve months: 28.1% against 4.54%. Xylem Inc. has the higher net margin (11.2% vs 8.90%) and the higher return on invested capital (6.84% vs 5.35%). Both pay a dividend; ITT Inc. yields more (1.02% vs 1.01%). Across the 23 metrics below, Xylem Inc. leads on 18 and ITT Inc. on 5.

Valuation

Metric ITT XYL Specialty Industrial Machinery median
P/E 40.29 24.44 29.62
P/S 3.89 2.66 2.77
P/B 3.83 2.33 3.04
Price to free cash flow 36.19 24.67 23.81
EV/EBITDA 23.97 13.73 16.05
EV/Sales 4.55 2.84 2.94
Earnings yield 2.48% 4.09% 3.08%
Free cash flow yield 2.76% 4.05% 3.12%

Profitability

Metric ITT XYL Specialty Industrial Machinery median
Gross margin 34.98% 39.24% 35.90%
Operating margin 14.35% 14.48% 11.22%
Net margin 8.90% 11.15% 7.80%
Free cash flow margin 10.75% 10.77% 9.51%
Return on equity 11.43% 9.47% 11.10%
Return on assets 5.25% 5.90% 4.63%
Return on invested capital 5.35% 6.84% 5.37%

Growth

Metric ITT XYL Specialty Industrial Machinery median
Revenue growth (TTM) 28.07% 4.54% 6.45%
EPS growth (last fiscal year) (3.02%) 7.40% —
Revenue growth, 5-year CAGR 9.71% 13.13% 8.31%
Net income growth, 5-year CAGR 46.43% 30.38% 5.04%

Health

Metric ITT XYL Specialty Industrial Machinery median
Debt to equity 0.78 0.28 0.35
Current ratio 1.26 1.61 2.11
Net debt to EBITDA (1.16) 0.26 1.32

Dividend

Metric ITT XYL Specialty Industrial Machinery median
Dividend yield 1.02% 1.01% 1.12%
Payout ratio 0.22 0.67 0.17

Size

Metric ITT XYL Specialty Industrial Machinery median
Market cap 19.13b 24.19b 1.97b

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