Hubbell vs Xylem
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KIRA’s take AI analyst
I put Hubbell and Xylem side by side, using each one’s latest annual report. Here is what stands out:
- Xylem is the larger business, with $9.0B of revenue in fiscal 2025 against $5.8B for Hubbell, about 1.5 times as much.
- Xylem grew revenue faster (5.5%, against 3.8%).
- Hubbell kept more of each dollar of sales as operating profit (20.7% operating margin, against 13.5%).
- Hubbell turned more of its sales into free cash flow (15.0% FCF margin, against 10.1%).
- Hubbell earned a higher return on the capital invested in it (18.7%, against 8.1%).
- Investors pay more for each dollar of Hubbell’s earnings: a P/E of 27.1x against 25.8x for Xylem.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Hubbell
HUBB
7/11
Operating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Xylem
XYL
4/11
Revenue growth5-year growthGross marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | HUBB FY25 | XYL FY25 |
|---|---|---|
| Size | ||
| Market cap | $24.5B | $25.6B |
| Revenue | $5.8B | $9.0B |
| Free cash flow | $875M | $910M |
| Net income | $887M | $957M |
| Growth | ||
| Revenue growth | 3.8% | 5.5% |
| 5-year growth | 9.7% | 13.1% |
| Share count change | −0.9% | 0.2% |
| Profitability | ||
| Gross margin | 35.3% | 38.5% |
| Operating margin | 20.7% | 13.5% |
| Net margin | 15.2% | 10.6% |
| FCF margin | 15.0% | 10.1% |
| Return on capital | 18.7% | 8.1% |
| Return on equity | 24.5% | 8.7% |
| Balance sheet | ||
| Net debt | $1.8B | $1.1B |
| Net debt / EBITDA | 1.3x | 0.6x |
| Dividends and buybacks | $225M | $406M |
| Valuation & quality | ||
| P/E | 27.1x | 25.8x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.