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 $28.3B against $7.2B — 3.9× the size. Zurn Elkay Water Solutions Cor trades at the lower P/E: 25.2× against 28.6×. Zurn Elkay Water Solutions Cor grew revenue faster over the last twelve months: 10.1% against 6.40%. Veralto Corporation has the higher net margin (17.3% vs 15.9%) and the higher return on invested capital (18.1% vs 13.4%). Both pay a dividend; Zurn Elkay Water Solutions Cor yields more (1.00% vs 0.45%). Across the 23 metrics below, Zurn Elkay Water Solutions Cor leads on 17 and Veralto Corporation on 6.

Valuation

Metric VLTO ZWS Pollution & Treatment Controls median
P/E 28.61 25.25 —
P/S 4.89 4.00 2.50
P/B 8.78 4.31 3.39
Price to free cash flow 25.97 18.86 —
EV/EBITDA 21.58 15.32 18.45
EV/Sales 5.09 4.10 2.74
Earnings yield 3.50% 3.96% (14.48%)
Free cash flow yield 3.85% 5.30% (11.96%)

Profitability

Metric VLTO ZWS Pollution & Treatment Controls median
Gross margin 60.20% 50.41% 32.15%
Operating margin 21.84% 22.07% (17.50%)
Net margin 17.27% 15.91% (17.98%)
Free cash flow margin 18.84% 21.19% (10.60%)
Return on equity 32.96% 17.69% (36.99%)
Return on assets 12.80% 10.58% (24.89%)
Return on invested capital 18.13% 13.35% (0.06%)

Growth

Metric VLTO ZWS Pollution & Treatment Controls median
Revenue growth (TTM) 6.40% 10.06% 8.69%
EPS growth (last fiscal year) 12.57% 25.00% 11.29%
Revenue growth, 5-year CAGR 4.82% 13.24% 12.30%
Net income growth, 5-year CAGR 5.36% 10.37% 0.00%

Health

Metric VLTO ZWS Pollution & Treatment Controls median
Debt to equity 0.90 0.30 0.07
Current ratio 2.03 2.85 1.84
Net debt to EBITDA 0.47 0.53 0.50

Dividend

Metric VLTO ZWS Pollution & Treatment Controls median
Dividend yield 0.45% 1.00% —
Payout ratio 0.13 0.26 —

Size

Metric VLTO ZWS Pollution & Treatment Controls median
Market cap 28.34b 7.24b 62.87m

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