Graco vs RBC Bearings
Add, change or remove companies; up to four.
KIRA’s take AI analyst
I put Graco and RBC Bearings side by side, using each one’s latest annual report. Here is what stands out:
- Graco is the larger business, with $2.2B of revenue in fiscal 2025 against $1.9B for RBC Bearings.
- RBC Bearings grew revenue faster (14.3%, against 5.8%).
- Graco kept more of each dollar of sales as operating profit (27.9% operating margin, against 22.5%).
- Graco turned more of its sales into free cash flow (28.5% FCF margin, against 18.3%).
- Graco earned a higher return on the capital invested in it (25.8%, against 8.0%).
- Investors pay more for each dollar of RBC Bearings’s earnings: a P/E of 47.2x against 21.3x for Graco.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Graco
GGG
8/11
Gross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
RBC Bearings
RBC
3/11
Revenue growth5-year growthPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | GGG FY25 | RBC FY26 |
|---|---|---|
| Size | ||
| Market cap | $10.8B | $15.1B |
| Revenue | $2.2B | $1.9B |
| Free cash flow | $638M | $343M |
| Net income | $522M | $288M |
| Growth | ||
| Revenue growth | 5.8% | 14.3% |
| 5-year growth | 6.3% | 25.2% |
| Share count change | −1.9% | 4.2% |
| Profitability | ||
| Gross margin | 52.5% | 44.4% |
| Operating margin | 27.9% | 22.5% |
| Net margin | 23.3% | 15.4% |
| FCF margin | 28.5% | 18.3% |
| Return on capital | 25.8% | 8.0% |
| Return on equity | 19.9% | 9.0% |
| Balance sheet | ||
| Net debt | −$623M | $864M |
| Net debt / EBITDA | −0.9x | 1.6x |
| Dividends and buybacks | $607M | $0.0M |
| Valuation & quality | ||
| P/E | 21.3x | 47.2x |
| Piotroski F-score | 4 | 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.