Parker-Hannifin Corporation (PH) vs Rockwell Automation, Inc. (ROK)

Parker-Hannifin Corporation and Rockwell Automation, Inc. are both Specialty Industrial Machinery companies. Parker-Hannifin Corporation is the larger, with a market value of $112.5B against $42.3B — 2.7× the size. Parker-Hannifin Corporation trades at the lower P/E: 30.5× against 35.6×. Parker-Hannifin Corporation grew revenue faster over the last twelve months: 11.9% against 11.3%. Parker-Hannifin Corporation has the higher net margin (16.6% vs 13.4%) and the lower return on invested capital (0.00% vs 14.7%). Both pay a dividend; Rockwell Automation, Inc. yields more (1.45% vs 0.85%). Across the 23 metrics below, Rockwell Automation, Inc. leads on 13 and Parker-Hannifin Corporation on 10.

Valuation

Metric PH ROK Specialty Industrial Machinery median
P/E 30.46 35.64 25.64
P/S 5.06 4.71 2.81
P/B 7.06 12.08 2.99
Price to free cash flow 28.96 28.09 23.82
EV/EBITDA 22.51 22.18 15.15
EV/Sales 5.60 4.94 2.77
Earnings yield 3.28% 2.81% 3.07%
Free cash flow yield 3.45% 3.56% 3.67%

Profitability

Metric PH ROK Specialty Industrial Machinery median
Gross margin 37.74% 49.09% 35.46%
Operating margin 0.00% 16.19% 10.04%
Net margin 16.62% 13.36% 7.24%
Free cash flow margin 19.34% 16.76% 9.04%
Return on equity 24.95% 33.66% 10.73%
Return on assets 10.26% 10.76% 4.51%
Return on invested capital 0.00% 14.71% 5.00%

Growth

Metric PH ROK Specialty Industrial Machinery median
Revenue growth (TTM) 11.87% 11.31% 6.59%
EPS growth (last fiscal year) 5.01% (7.37%) 5.97%
Revenue growth, 5-year CAGR 8.42% 5.68% 8.53%
Net income growth, 5-year CAGR 15.88% (3.26%) 6.58%

Health

Metric PH ROK Specialty Industrial Machinery median
Debt to equity 0.79 0.74 0.33
Current ratio 0.94 1.08 2.08
Net debt to EBITDA 1.12 1.32 1.32

Dividend

Metric PH ROK Specialty Industrial Machinery median
Dividend yield 0.85% 1.45% 1.11%
Payout ratio 0.26 0.52 0.31

Size

Metric PH ROK Specialty Industrial Machinery median
Market cap 112.53b 42.32b 2.19b

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