Ingersoll Rand vs Xylem
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KIRA’s take AI analyst
I put Ingersoll Rand 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 $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 30.7x 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.
Ingersoll Rand
IR
6/11
Revenue growth5-year growthGross marginOperating marginFCF marginShare count change
Xylem
XYL
5/11
Net marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | IR FY25 | XYL FY25 |
|---|---|---|
| Size | ||
| Market cap | $29.2B | $25.6B |
| 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 | 30.7x | 25.8x |
| Piotroski F-score | 5 | 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.