Resideo Technologies, Inc. (REZI) vs Titan Machinery Inc. (TITN)

Resideo Technologies, Inc. and Titan Machinery Inc. are both Industrial Distribution companies. Resideo Technologies, Inc. is the larger, with a market value of $2.8B against $552.6M — 5.0× the size. Titan Machinery Inc. has negative trailing earnings, so its P/E is not meaningful; Resideo Technologies, Inc. trades at 7.9×. Resideo Technologies, Inc. grew revenue faster over the last twelve months: 3.42% against −10.7%. Resideo Technologies, Inc. has the higher net margin (4.95% vs −2.46%) and the higher return on invested capital (5.86% vs −0.81%). Across the 19 metrics below, Resideo Technologies, Inc. leads on 11 and Titan Machinery Inc. on 8.

Valuation

Metric REZI TITN Industrial Distribution median
P/E 7.88 n/m 28.81
P/S 0.36 0.23 1.10
P/B 1.09 0.97 3.59
Price to free cash flow n/m 9.64 22.50
EV/EBITDA 7.39 23.62 15.13
EV/Sales 0.70 0.31 1.31
Earnings yield 12.70% (10.59%) 3.16%
Free cash flow yield (50.71%) 10.38% 3.85%

Profitability

Metric REZI TITN Industrial Distribution median
Gross margin 29.56% 16.47% 30.34%
Operating margin 6.89% (0.41%) 8.06%
Net margin 4.95% (2.46%) 4.95%
Free cash flow margin (18.28%) 2.43% 4.67%
Return on equity 16.28% (9.71%) 14.29%
Return on assets 4.38% (3.24%) 5.30%
Return on invested capital 5.86% (0.81%) 8.13%

Growth

Metric REZI TITN Industrial Distribution median
Revenue growth (TTM) 3.42% (10.67%) 7.80%
EPS growth (last fiscal year) (718.03%) (46.01%) —
Revenue growth, 5-year CAGR 8.06% 11.45% 9.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.99%

Health

Metric REZI TITN Industrial Distribution median
Debt to equity 1.18 0.38 0.53
Current ratio 2.22 1.35 2.47
Net debt to EBITDA 3.12 5.85 1.17

Dividend

Metric REZI TITN Industrial Distribution median
Dividend yield — — 1.54%
Payout ratio 0.00 0.00 0.00

Size

Metric REZI TITN Industrial Distribution median
Market cap 2.78b 552.55m 5.60b

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