Powell Industries, Inc. (POWL) vs Vertiv Holdings Co. (VRT)

Powell Industries, Inc. and Vertiv Holdings Co. are both Electrical Equipment & Parts companies. Vertiv Holdings Co. is the larger, with a market value of $96.8B against $7.1B — 13.7× the size. Powell Industries, Inc. trades at the lower P/E: 36.1× against 56.2×. Vertiv Holdings Co. grew revenue faster over the last twelve months: 26.2% against 7.04%. Powell Industries, Inc. has the higher net margin (16.5% vs 15.1%) and the higher return on invested capital (116.0% vs 29.6%). Both pay a dividend; Powell Industries, Inc. yields more (0.74% vs 0.03%). Across the 23 metrics below, Powell Industries, Inc. leads on 17 and Vertiv Holdings Co. on 6.

Valuation

Metric POWL VRT Electrical Equipment & Parts median
P/E 36.10 56.16 36.10
P/S 5.97 8.48 2.73
P/B 9.13 20.47 3.57
Price to free cash flow 28.30 33.31 33.31
EV/EBITDA 26.56 37.91 18.07
EV/Sales 5.42 8.47 2.75
Earnings yield 2.77% 1.78% (5.84%)
Free cash flow yield 3.53% 3.00% 0.00%

Profitability

Metric POWL VRT Electrical Equipment & Parts median
Gross margin 30.08% 38.04% 25.38%
Operating margin 19.67% 18.94% 0.00%
Net margin 16.49% 15.09% 0.00%
Free cash flow margin 21.08% 25.47% 0.00%
Return on equity 28.25% 43.94% 0.94%
Return on assets 15.59% 13.17% (1.50%)
Return on invested capital 116.04% 29.63% 0.00%

Growth

Metric POWL VRT Electrical Equipment & Parts median
Revenue growth (TTM) 7.04% 26.23% 9.28%
EPS growth (last fiscal year) 20.91% 166.41% —
Revenue growth, 5-year CAGR 16.32% 18.54% 9.80%
Net income growth, 5-year CAGR 61.09% 0.00% 0.00%

Health

Metric POWL VRT Electrical Equipment & Parts median
Debt to equity 0.00 0.62 0.08
Current ratio 1.97 1.38 2.18
Net debt to EBITDA (2.11) 0.51 0.26

Dividend

Metric POWL VRT Electrical Equipment & Parts median
Dividend yield 0.74% 0.03% 0.84%
Payout ratio 0.34 0.02 0.00

Size

Metric POWL VRT Electrical Equipment & Parts median
Market cap 7.05b 96.81b 177.98m

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