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

Pentair plc and Watts Water Technologies, Inc. are both Specialty Industrial Machinery companies. Pentair plc and Watts Water Technologies, Inc. are of similar size ($11.6B and $11.1B). Pentair plc trades at the lower P/E: 18.4× against 26.0×. Watts Water Technologies, Inc. grew revenue faster over the last twelve months: 18.7% against −3.93%. Watts Water Technologies, Inc. has the higher net margin (16.0% vs 15.4%) and the higher return on invested capital (18.7% vs 9.22%). Both pay a dividend; Pentair plc yields more (1.55% vs 0.66%). Across the 23 metrics below, Watts Water Technologies, Inc. leads on 13 and Pentair plc on 10.

Valuation

Metric PNR WTS Specialty Industrial Machinery median
P/E 18.41 26.00 25.64
P/S 2.81 4.16 2.81
P/B 2.88 5.01 2.99
Price to free cash flow 17.15 31.65 23.82
EV/EBITDA 13.88 19.76 15.15
EV/Sales 3.16 4.07 2.77
Earnings yield 5.43% 3.85% 3.07%
Free cash flow yield 5.83% 3.16% 3.67%

Profitability

Metric PNR WTS Specialty Industrial Machinery median
Gross margin 41.23% 50.49% 35.46%
Operating margin 19.60% 21.17% 10.04%
Net margin 15.44% 16.00% 7.24%
Free cash flow margin 16.37% 13.26% 9.04%
Return on equity 16.02% 20.91% 10.73%
Return on assets 9.12% 15.41% 4.51%
Return on invested capital 9.22% 18.74% 5.00%

Growth

Metric PNR WTS Specialty Industrial Machinery median
Revenue growth (TTM) (3.93%) 18.68% 6.59%
EPS growth (last fiscal year) 5.88% 17.03% 5.97%
Revenue growth, 5-year CAGR 6.71% 10.08% 8.53%
Net income growth, 5-year CAGR 12.76% 24.42% 6.58%

Health

Metric PNR WTS Specialty Industrial Machinery median
Debt to equity 0.38 0.04 0.33
Current ratio 1.47 2.80 2.08
Net debt to EBITDA 1.58 (0.41) 1.32

Dividend

Metric PNR WTS Specialty Industrial Machinery median
Dividend yield 1.55% 0.66% 1.11%
Payout ratio 0.29 0.17 0.31

Size

Metric PNR WTS Specialty Industrial Machinery median
Market cap 11.14b 11.60b 2.19b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack