Rockwell Automation, Inc. (ROK) vs Xylem Inc. (XYL)

Rockwell Automation, Inc. and Xylem Inc. are both Specialty Industrial Machinery companies. Rockwell Automation, Inc. is the larger, with a market value of $46.9B against $24.1B — 1.9× the size. Xylem Inc. trades at the lower P/E: 24.8× against 39.9×. Rockwell Automation, Inc. grew revenue faster over the last twelve months: 11.3% against 4.54%. Rockwell Automation, Inc. has the higher net margin (13.4% vs 11.2%) and the higher return on invested capital (14.7% vs 6.84%). Both pay a dividend; Xylem Inc. yields more (1.62% vs 1.30%). Across the 23 metrics below, Xylem Inc. leads on 15 and Rockwell Automation, Inc. on 8.

Valuation

Metric ROK XYL Specialty Industrial Machinery median
P/E 39.95 24.78 28.39
P/S 5.28 2.69 2.70
P/B 13.55 2.36 3.02
Price to free cash flow 31.49 25.01 23.32
EV/EBITDA 24.74 13.91 15.39
EV/Sales 5.51 2.88 2.81
Earnings yield 2.50% 4.04% 3.12%
Free cash flow yield 3.18% 4.00% 3.24%

Profitability

Metric ROK XYL Specialty Industrial Machinery median
Gross margin 49.09% 39.24% 35.90%
Operating margin 16.19% 14.48% 11.22%
Net margin 13.36% 11.15% 7.80%
Free cash flow margin 16.76% 10.77% 9.51%
Return on equity 33.66% 9.47% 10.50%
Return on assets 10.76% 5.90% 4.60%
Return on invested capital 14.71% 6.84% 5.36%

Growth

Metric ROK XYL Specialty Industrial Machinery median
Revenue growth (TTM) 11.31% 4.54% 6.45%
EPS growth (last fiscal year) (7.37%) 7.40% 4.97%
Revenue growth, 5-year CAGR 5.68% 13.13% 8.31%
Net income growth, 5-year CAGR (3.26%) 30.38% 5.04%

Health

Metric ROK XYL Specialty Industrial Machinery median
Debt to equity 0.74 0.28 0.35
Current ratio 1.08 1.61 2.11
Net debt to EBITDA 1.32 0.26 1.32

Dividend

Metric ROK XYL Specialty Industrial Machinery median
Dividend yield 1.30% 1.62% 1.10%
Payout ratio 0.52 0.40 0.31

Size

Metric ROK XYL Specialty Industrial Machinery median
Market cap 46.87b 24.14b 1.91b

Compare with another peer

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