Veralto Corporation (VLTO) vs Zurn Elkay Water Solutions Cor (ZWS)

Veralto Corporation and Zurn Elkay Water Solutions Cor are both Pollution & Treatment Controls companies. Veralto Corporation is the larger, with a market value of $23.5B against $7.7B — 3.0× the size. Veralto Corporation trades at the lower P/E: 24.3× against 28.4×. Zurn Elkay Water Solutions Cor grew revenue faster over the last twelve months: 10.7% against 6.23%. Veralto Corporation has the higher net margin (17.4% vs 15.5%) and the higher return on invested capital (18.6% vs 13.0%). Both pay a dividend; Zurn Elkay Water Solutions Cor yields more (0.79% vs 0.33%). Across the 23 metrics below, Zurn Elkay Water Solutions Cor leads on 12 and Veralto Corporation on 11.

Valuation

Metric VLTO ZWS Pollution & Treatment Controls median
P/E 24.33 28.45 —
P/S 4.18 4.36 3.64
P/B 7.68 4.70 2.08
Price to free cash flow 22.74 20.59 —
EV/EBITDA 18.06 17.29 17.68
EV/Sales 4.40 4.44 4.26
Earnings yield 4.11% 3.52% (18.01%)
Free cash flow yield 4.40% 4.86% (5.86%)

Profitability

Metric VLTO ZWS Pollution & Treatment Controls median
Gross margin 60.18% 49.01% 34.73%
Operating margin 22.74% 20.84% (29.01%)
Net margin 17.35% 15.45% (31.94%)
Free cash flow margin 18.38% 21.19% (12.20%)
Return on equity 34.31% 17.13% (38.24%)
Return on assets 12.56% 10.16% (26.06%)
Return on invested capital 18.57% 12.98% 0.00%

Growth

Metric VLTO ZWS Pollution & Treatment Controls median
Revenue growth (TTM) 6.23% 10.69% 9.79%
EPS growth (last fiscal year) 12.57% 25.00% —
Revenue growth, 5-year CAGR 4.82% 13.24% 8.56%
Net income growth, 5-year CAGR 5.36% 10.37% 0.00%

Health

Metric VLTO ZWS Pollution & Treatment Controls median
Debt to equity 1.09 0.30 0.03
Current ratio 1.78 3.05 1.90
Net debt to EBITDA 0.47 0.53 0.30

Dividend

Metric VLTO ZWS Pollution & Treatment Controls median
Dividend yield 0.33% 0.79% —
Payout ratio — 1.65 0.00

Size

Metric VLTO ZWS Pollution & Treatment Controls median
Market cap 23.45b 7.73b 48.08m

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