Linde PLC (LIN) vs PPG Industries, Inc. (PPG)

Linde PLC and PPG Industries, Inc. are both Specialty Chemicals companies. Linde PLC is the larger, with a market value of $214.9B against $23.6B — 9.1× the size. PPG Industries, Inc. trades at the lower P/E: 15.3× against 30.2×. Linde PLC grew revenue faster over the last twelve months: 6.63% against 4.99%. Linde PLC has the higher net margin (20.4% vs 9.57%) and the lower return on invested capital (9.20% vs 9.87%). Both pay a dividend; PPG Industries, Inc. yields more (1.92% vs 1.33%). Across the 23 metrics below, PPG Industries, Inc. leads on 13 and Linde PLC on 10.

Valuation

Metric LIN PPG Specialty Chemicals median
P/E 30.20 15.32 24.83
P/S 6.13 1.46 1.46
P/B 5.35 2.79 1.76
Price to free cash flow 43.69 17.04 19.84
EV/EBITDA 18.21 10.72 13.18
EV/Sales 6.78 1.78 1.84
Earnings yield 3.31% 6.53% 2.11%
Free cash flow yield 2.29% 5.87% 2.29%

Profitability

Metric LIN PPG Specialty Chemicals median
Gross margin 48.35% 40.90% 29.23%
Operating margin 26.45% 13.35% 3.63%
Net margin 20.43% 9.57% 2.89%
Free cash flow margin 14.03% 8.57% 3.78%
Return on equity 17.98% 19.25% 3.62%
Return on assets 8.31% 7.04% 0.35%
Return on invested capital 9.20% 9.87% 2.75%

Growth

Metric LIN PPG Specialty Chemicals median
Revenue growth (TTM) 6.63% 4.99% 4.51%
EPS growth (last fiscal year) 7.27% 46.11% —
Revenue growth, 5-year CAGR 4.52% 2.79% 6.30%
Net income growth, 5-year CAGR 22.50% 8.28% 0.00%

Health

Metric LIN PPG Specialty Chemicals median
Debt to equity 0.69 0.80 0.54
Current ratio 0.88 1.58 1.94
Net debt to EBITDA 1.73 1.89 2.03

Dividend

Metric LIN PPG Specialty Chemicals median
Dividend yield 1.33% 1.92% 1.69%
Payout ratio 0.43 0.45 0.25

Size

Metric LIN PPG Specialty Chemicals median
Market cap 214.90b 23.63b 2.43b

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