Nordson Corporation (NDSN) vs Watts Water Technologies, Inc. (WTS)

Nordson Corporation and Watts Water Technologies, Inc. are both Specialty Industrial Machinery companies. Nordson Corporation is the larger, with a market value of $18.0B against $12.0B — 1.5× the size. Watts Water Technologies, Inc. trades at the lower P/E: 31.3× against 32.8×. Watts Water Technologies, Inc. grew revenue faster over the last twelve months: 17.1% against 7.02%. Nordson Corporation has the higher net margin (18.6% vs 14.3%) and the lower return on invested capital (10.2% vs 16.4%). Both pay a dividend; Nordson Corporation yields more (1.07% vs 0.65%). Across the 23 metrics below, Watts Water Technologies, Inc. leads on 16 and Nordson Corporation on 7.

Valuation

Metric NDSN WTS Specialty Industrial Machinery median
P/E 32.81 31.30 29.62
P/S 6.09 4.48 2.77
P/B 5.55 5.48 3.04
Price to free cash flow 25.03 34.68 23.81
EV/EBITDA 20.85 20.50 16.05
EV/Sales 6.64 4.40 2.94
Earnings yield 3.05% 3.19% 3.08%
Free cash flow yield 4.00% 2.88% 3.12%

Profitability

Metric NDSN WTS Specialty Industrial Machinery median
Gross margin 55.29% 48.85% 35.90%
Operating margin 26.88% 19.13% 11.22%
Net margin 18.63% 14.34% 7.80%
Free cash flow margin 24.33% 13.05% 9.51%
Return on equity 17.76% 18.81% 11.10%
Return on assets 9.29% 13.72% 4.63%
Return on invested capital 10.23% 16.42% 5.37%

Growth

Metric NDSN WTS Specialty Industrial Machinery median
Revenue growth (TTM) 7.02% 17.13% 6.45%
EPS growth (last fiscal year) 4.93% 17.03% —
Revenue growth, 5-year CAGR 5.65% 10.08% 8.31%
Net income growth, 5-year CAGR 14.19% 24.42% 5.04%

Health

Metric NDSN WTS Specialty Industrial Machinery median
Debt to equity 0.53 0.05 0.35
Current ratio 1.82 2.66 2.11
Net debt to EBITDA 2.20 (0.41) 1.32

Dividend

Metric NDSN WTS Specialty Industrial Machinery median
Dividend yield 1.07% 0.65% 1.12%
Payout ratio 0.30 0.16 0.17

Size

Metric NDSN WTS Specialty Industrial Machinery median
Market cap 18.01b 12.04b 1.97b

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