The Middleby Corporation (MIDD) vs MUELLER WATER PRODUCTS (MWA)

The Middleby Corporation and MUELLER WATER PRODUCTS are both Specialty Industrial Machinery companies. The Middleby Corporation is the larger, with a market value of $4.9B against $3.4B — 1.5× the size. The Middleby Corporation has negative trailing earnings, so its P/E is not meaningful; MUELLER WATER PRODUCTS trades at 15.1×. The Middleby Corporation grew revenue faster over the last twelve months: 22.8% against 5.88%. MUELLER WATER PRODUCTS has the higher net margin (15.0% vs −13.9%) and the higher return on invested capital (16.7% vs 8.97%). Both pay a dividend; MUELLER WATER PRODUCTS yields more (1.78% vs 0.23%). Across the 22 metrics below, MUELLER WATER PRODUCTS leads on 13 and The Middleby Corporation on 9.

Valuation

Metric MIDD MWA Specialty Industrial Machinery median
P/E n/m 15.13 29.62
P/S 1.44 2.29 2.77
P/B 2.21 3.02 3.04
Price to free cash flow 10.15 20.95 23.81
EV/EBITDA 9.81 9.90 16.05
EV/Sales 1.98 2.26 2.94
Earnings yield (8.60%) 6.61% 3.08%
Free cash flow yield 9.86% 4.77% 3.12%

Profitability

Metric MIDD MWA Specialty Industrial Machinery median
Gross margin 38.40% 37.86% 35.90%
Operating margin 17.07% 19.42% 11.22%
Net margin (13.91%) 15.02% 7.80%
Free cash flow margin 14.22% 12.23% 9.51%
Return on equity (16.16%) 21.68% 11.10%
Return on assets (7.42%) 12.06% 4.63%
Return on invested capital 8.97% 16.66% 5.37%

Growth

Metric MIDD MWA Specialty Industrial Machinery median
Revenue growth (TTM) 22.83% 5.88% 6.45%
EPS growth (last fiscal year) (167.34%) 64.86% —
Revenue growth, 5-year CAGR 4.96% 8.20% 8.31%
Net income growth, 5-year CAGR 0.00% 21.63% 5.04%

Health

Metric MIDD MWA Specialty Industrial Machinery median
Debt to equity 0.90 0.40 0.35
Current ratio 1.99 4.64 2.11
Net debt to EBITDA 2.87 0.07 1.32

Dividend

Metric MIDD MWA Specialty Industrial Machinery median
Dividend yield 0.23% 1.78% 1.12%
Payout ratio 0.00 0.50 0.17

Size

Metric MIDD MWA Specialty Industrial Machinery median
Market cap 4.89b 3.35b 1.97b

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