Omega Flex, Inc. (OFLX) vs Serve Robotics Inc. (SERV)

Omega Flex, Inc. and Serve Robotics Inc. are both Specialty Industrial Machinery companies. Serve Robotics Inc. is the larger, with a market value of $389.6M against $254.1M — 1.5× the size. Serve Robotics Inc. has negative trailing earnings, so its P/E is not meaningful; Omega Flex, Inc. trades at 21.5×. Serve Robotics Inc. grew revenue faster over the last twelve months: 426.3% against −4.08%. Omega Flex, Inc. has the higher net margin (12.3% vs −2,315.8%) and the higher return on invested capital (25.0% vs −103.6%). Across the 17 metrics below, Omega Flex, Inc. leads on 13 and Serve Robotics Inc. on 4.

Valuation

Metric OFLX SERV Specialty Industrial Machinery median
P/E 21.46 n/m 29.62
P/S 2.67 45.87 2.77
P/B 3.15 1.02 3.04
Price to free cash flow 23.81 n/m 23.81
EV/EBITDA 14.11 n/m 16.05
EV/Sales 2.18 15.69 2.94
Earnings yield 4.66% (55.06%) 3.08%
Free cash flow yield 4.20% (47.39%) 3.12%

Profitability

Metric OFLX SERV Specialty Industrial Machinery median
Gross margin 57.78% (370.09%) 35.90%
Operating margin 14.00% (2,476.78%) 11.22%
Net margin 12.27% (2,315.81%) 7.80%
Free cash flow margin 11.21% (2,174.06%) 9.51%
Return on equity 14.30% (64.55%) 11.10%
Return on assets 11.65% (60.86%) 4.63%
Return on invested capital 24.95% (103.62%) 5.37%

Growth

Metric OFLX SERV Specialty Industrial Machinery median
Revenue growth (TTM) (4.08%) 426.31% 6.45%
EPS growth (last fiscal year) (17.42%) (52.34%) —
Revenue growth, 5-year CAGR (1.46%) — 8.31%
Net income growth, 5-year CAGR (5.73%) 0.00% 5.04%

Health

Metric OFLX SERV Specialty Industrial Machinery median
Debt to equity 0.00 0.00 0.35
Current ratio 5.63 12.83 2.11
Net debt to EBITDA (2.91) 2.23 1.32

Dividend

Metric OFLX SERV Specialty Industrial Machinery median
Dividend yield 1.89% — 1.12%
Payout ratio 0.57 — 0.17

Size

Metric OFLX SERV Specialty Industrial Machinery median
Market cap 254.07m 389.63m 1.97b

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