Ingersoll Rand vs Xylem
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The short version
- Xylem is the larger business, with $9.0B of revenue in fiscal 2025 against $7.7B for Ingersoll Rand.
- Ingersoll Rand kept more of each dollar of sales as operating profit (15.0% operating margin, against 13.5%).
- Ingersoll Rand turned more of its sales into free cash flow (16.0% FCF margin, against 10.1%).
- Xylem earned a higher return on the capital invested in it (8.1%, against 6.5%).
- Investors pay more for each dollar of Ingersoll Rand’s earnings: a P/E of 30.2x against 25.9x for Xylem.
| Latest fiscal year | IR · FY25 | XYL · FY25 |
|---|---|---|
| Size | ||
| Market cap | $28.8B | $25.7B |
| Revenue | $7.7B | $9.0B |
| Free cash flow | $1.2B | $910M |
| Net income | $581M | $957M |
| Growth | ||
| Revenue growth | 5.8% | 5.5% |
| 5-year growth | 14.0% | 13.1% |
| Share count change | −1.5% | 0.2% |
| Profitability | ||
| Gross margin | 43.6% | 38.5% |
| Operating margin | 15.0% | 13.5% |
| Net margin | 7.6% | 10.6% |
| FCF margin | 16.0% | 10.1% |
| Return on capital | 6.5% | 8.1% |
| Return on equity | 5.7% | 8.7% |
| Balance sheet | ||
| Net debt | $3.5B | $1.1B |
| Net debt / EBITDA | 2.1x | 0.6x |
| Dividends and buybacks | $1.0B | $406M |
| Valuation & quality | ||
| P/E | 30.2x | 25.9x |
| Piotroski F-score | 5 | 6 |
Revenue
FY16
IR $1.9B
XYL $3.8B
FY17
IR $2.4B
XYL $4.7B
FY18
IR $2.7B
XYL $5.2B
FY19
IR $2.0B
XYL $5.2B
FY20
IR $4.0B
XYL $4.9B
FY21
IR $5.2B
XYL $5.2B
FY22
IR $5.9B
XYL $5.5B
FY23
IR $6.9B
XYL $7.4B
FY24
IR $7.2B
XYL $8.6B
FY25
IR $7.7B
XYL $9.0B
IR
XYL
Operating margin
FY16
IR 5.3%
XYL 10.8%
FY17
IR 4.6%
XYL 11.7%
FY18
IR 16.5%
XYL 12.6%
FY19
IR 9.6%
XYL 9.3%
FY20
IR 1.5%
XYL 7.5%
FY21
IR 11.0%
XYL 11.3%
FY22
IR 13.8%
XYL 11.3%
FY23
IR 16.9%
XYL 8.9%
FY24
IR 18.0%
XYL 11.8%
FY25
IR 15.0%
XYL 13.5%
IR
XYL
Free cash flow
FY16
IR $91.2M
XYL $373M
FY17
IR $144M
XYL $516M
FY18
IR $392M
XYL $349M
FY19
IR $305M
XYL $613M
FY20
IR $872M
XYL $641M
FY21
IR $564M
XYL $330M
FY22
IR $771M
XYL $388M
FY23
IR $1.3B
XYL $566M
FY24
IR $1.2B
XYL $942M
FY25
IR $1.2B
XYL $910M
IR
XYL
Return on capital
FY16
IR —
XYL 9.0%
FY17
IR 2.9%
XYL 9.1%
FY18
IR 10.9%
XYL 13.5%
FY19
IR 5.6%
XYL 10.0%
FY20
IR 0.7%
XYL 7.5%
FY21
IR 5.4%
XYL 11.5%
FY22
IR 6.5%
XYL 11.4%
FY23
IR 8.4%
XYL 7.8%
FY24
IR 8.2%
XYL 7.1%
FY25
IR 6.5%
XYL 8.1%
IR
XYL
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.