Nordson Corporation (NDSN) vs Pentair plc (PNR)

Nordson Corporation and Pentair plc are both Specialty Industrial Machinery companies. Nordson Corporation is the larger, with a market value of $17.3B against $11.1B — 1.6× the size. Pentair plc trades at the lower P/E: 18.0× against 31.1×. Nordson Corporation grew revenue faster over the last twelve months: 7.02% against −3.93%. Nordson Corporation has the higher net margin (18.6% vs 15.4%) and the higher return on invested capital (10.2% vs 9.22%). Both pay a dividend; Pentair plc yields more (1.59% vs 1.10%). Across the 23 metrics below, Pentair plc leads on 13 and Nordson Corporation on 10.

Valuation

Metric NDSN PNR Specialty Industrial Machinery median
P/E 31.15 17.98 25.47
P/S 5.78 2.74 2.74
P/B 5.27 2.82 3.03
Price to free cash flow 23.76 16.74 22.98
EV/EBITDA 19.88 13.58 15.21
EV/Sales 6.33 3.10 2.76
Earnings yield 3.21% 5.56% 2.95%
Free cash flow yield 4.21% 5.97% 3.53%

Profitability

Metric NDSN PNR Specialty Industrial Machinery median
Gross margin 55.29% 41.23% 35.77%
Operating margin 26.88% 19.60% 10.95%
Net margin 18.63% 15.44% 8.02%
Free cash flow margin 24.33% 16.37% 9.09%
Return on equity 17.76% 16.02% 11.03%
Return on assets 9.29% 9.12% 5.05%
Return on invested capital 10.23% 9.22% 5.56%

Growth

Metric NDSN PNR Specialty Industrial Machinery median
Revenue growth (TTM) 7.02% (3.93%) 6.31%
EPS growth (last fiscal year) 4.93% 5.88% 6.73%
Revenue growth, 5-year CAGR 5.65% 6.71% 8.53%
Net income growth, 5-year CAGR 14.19% 12.76% 6.58%

Health

Metric NDSN PNR Specialty Industrial Machinery median
Debt to equity 0.53 0.38 0.33
Current ratio 1.82 1.47 2.10
Net debt to EBITDA 2.20 1.58 1.26

Dividend

Metric NDSN PNR Specialty Industrial Machinery median
Dividend yield 1.10% 1.59% 1.09%
Payout ratio 0.34 0.29 0.30

Size

Metric NDSN PNR Specialty Industrial Machinery median
Market cap 17.29b 11.14b 1.93b

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