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 $123.0B against $48.1B — 2.6× the size. Parker-Hannifin Corporation trades at the lower P/E: 33.9× against 40.7×. Rockwell Automation, Inc. grew revenue faster over the last twelve months: 11.3% against 8.31%. Parker-Hannifin Corporation has the higher net margin (17.0% vs 13.4%) and the lower return on invested capital (13.4% vs 14.7%). Both pay a dividend; Rockwell Automation, Inc. yields more (1.82% vs 1.16%). Across the 23 metrics below, Parker-Hannifin Corporation leads on 16 and Rockwell Automation, Inc. on 7.

Valuation

Metric PH ROK Specialty Industrial Machinery median
P/E 33.85 40.69 29.62
P/S 5.75 5.38 2.77
P/B 8.02 13.80 3.04
Price to free cash flow 31.32 32.07 23.81
EV/EBITDA 23.30 25.18 16.05
EV/Sales 6.04 5.61 2.94
Earnings yield 2.95% 2.46% 3.08%
Free cash flow yield 3.19% 3.12% 3.12%

Profitability

Metric PH ROK Specialty Industrial Machinery median
Gross margin 37.69% 49.09% 35.90%
Operating margin 21.55% 16.19% 11.22%
Net margin 16.97% 13.36% 7.80%
Free cash flow margin 18.35% 16.76% 9.51%
Return on equity 25.07% 33.66% 11.10%
Return on assets 12.09% 10.76% 4.63%
Return on invested capital 13.36% 14.71% 5.37%

Growth

Metric PH ROK Specialty Industrial Machinery median
Revenue growth (TTM) 8.31% 11.31% 6.45%
EPS growth (last fiscal year) 5.01% (7.37%) —
Revenue growth, 5-year CAGR 8.42% 5.68% 8.31%
Net income growth, 5-year CAGR 15.88% (3.26%) 5.04%

Health

Metric PH ROK Specialty Industrial Machinery median
Debt to equity 0.44 0.74 0.35
Current ratio 1.26 1.08 2.11
Net debt to EBITDA 1.12 1.32 1.32

Dividend

Metric PH ROK Specialty Industrial Machinery median
Dividend yield 1.16% 1.82% 1.12%
Payout ratio 0.34 0.38 0.17

Size

Metric PH ROK Specialty Industrial Machinery median
Market cap 122.96b 48.14b 1.97b

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