Regal Rexnord Corporation (RRX) vs Watts Water Technologies, Inc. (WTS)

Regal Rexnord Corporation 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 $10.2B — 1.2× the size. Watts Water Technologies, Inc. trades at the lower P/E: 31.3× against 32.0×. Watts Water Technologies, Inc. grew revenue faster over the last twelve months: 17.1% against 3.50%. Watts Water Technologies, Inc. has the higher net margin (14.3% vs 5.35%) and the higher return on invested capital (16.4% vs 3.98%). Both pay a dividend; Regal Rexnord Corporation yields more (1.00% vs 0.65%). Across the 23 metrics below, Watts Water Technologies, Inc. leads on 14 and Regal Rexnord Corporation on 9.

Valuation

Metric RRX WTS Specialty Industrial Machinery median
P/E 32.00 31.30 29.62
P/S 1.72 4.48 2.77
P/B 1.50 5.48 3.04
Price to free cash flow 21.76 34.68 23.81
EV/EBITDA 11.95 20.50 16.05
EV/Sales 2.41 4.40 2.94
Earnings yield 3.12% 3.19% 3.08%
Free cash flow yield 4.60% 2.88% 3.12%

Profitability

Metric RRX WTS Specialty Industrial Machinery median
Gross margin 37.75% 48.85% 35.90%
Operating margin 11.67% 19.13% 11.22%
Net margin 5.35% 14.34% 7.80%
Free cash flow margin 7.89% 13.05% 9.51%
Return on equity 4.75% 18.81% 11.10%
Return on assets 2.34% 13.72% 4.63%
Return on invested capital 3.98% 16.42% 5.37%

Growth

Metric RRX WTS Specialty Industrial Machinery median
Revenue growth (TTM) 3.50% 17.13% 6.45%
EPS growth (last fiscal year) 42.86% 17.03% —
Revenue growth, 5-year CAGR 15.34% 10.08% 8.31%
Net income growth, 5-year CAGR 8.29% 24.42% 5.04%

Health

Metric RRX WTS Specialty Industrial Machinery median
Debt to equity 0.67 0.05 0.35
Current ratio 2.28 2.66 2.11
Net debt to EBITDA 3.57 (0.41) 1.32

Dividend

Metric RRX WTS Specialty Industrial Machinery median
Dividend yield 1.00% 0.65% 1.12%
Payout ratio 0.38 0.16 0.17

Size

Metric RRX WTS Specialty Industrial Machinery median
Market cap 10.16b 12.04b 1.97b

Compare with another peer

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