Pentair plc (PNR) vs Watts Water Technologies, Inc. (WTS)

Pentair plc and Watts Water Technologies, Inc. are both Specialty Industrial Machinery companies. Watts Water Technologies, Inc. is the larger, with a market value of $12.0B against $8.5B — 1.4× the size. Pentair plc trades at the lower P/E: 13.4× against 31.3×. Watts Water Technologies, Inc. grew revenue faster over the last twelve months: 17.1% against −2.15%. Pentair plc has the higher net margin (16.2% vs 14.3%) and the lower return on invested capital (9.66% vs 16.4%). Both pay a dividend; Pentair plc yields more (1.09% vs 0.65%). Across the 23 metrics below, Pentair plc leads on 12 and Watts Water Technologies, Inc. on 11.

Valuation

Metric PNR WTS Specialty Industrial Machinery median
P/E 13.38 31.30 29.62
P/S 2.15 4.48 2.77
P/B 2.30 5.48 3.04
Price to free cash flow 12.77 34.68 23.81
EV/EBITDA 10.86 20.50 16.05
EV/Sales 2.53 4.40 2.94
Earnings yield 7.47% 3.19% 3.08%
Free cash flow yield 7.83% 2.88% 3.12%

Profitability

Metric PNR WTS Specialty Industrial Machinery median
Gross margin 41.35% 48.85% 35.90%
Operating margin 20.27% 19.13% 11.22%
Net margin 16.24% 14.34% 7.80%
Free cash flow margin 16.84% 13.05% 9.51%
Return on equity 17.55% 18.81% 11.10%
Return on assets 9.88% 13.72% 4.63%
Return on invested capital 9.66% 16.42% 5.37%

Growth

Metric PNR WTS Specialty Industrial Machinery median
Revenue growth (TTM) (2.15%) 17.13% 6.45%
EPS growth (last fiscal year) 5.88% 17.03% —
Revenue growth, 5-year CAGR 6.71% 10.08% 8.31%
Net income growth, 5-year CAGR 12.76% 24.42% 5.04%

Health

Metric PNR WTS Specialty Industrial Machinery median
Debt to equity 0.43 0.05 0.35
Current ratio 1.45 2.66 2.11
Net debt to EBITDA 1.58 (0.41) 1.32

Dividend

Metric PNR WTS Specialty Industrial Machinery median
Dividend yield 1.09% 0.65% 1.12%
Payout ratio 0.29 0.16 0.17

Size

Metric PNR WTS Specialty Industrial Machinery median
Market cap 8.49b 12.04b 1.97b

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