Dover vs Xylem
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KIRA’s take AI analyst
I put Dover 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 $8.1B for Dover.
- Xylem grew revenue faster (5.5%, against 4.5%).
- Dover kept more of each dollar of sales as operating profit (17.0% operating margin, against 13.5%).
- Dover turned more of its sales into free cash flow (13.8% FCF margin, against 10.1%).
- Dover earned a higher return on the capital invested in it (12.0%, against 8.1%).
- Investors pay more for each dollar of Xylem’s earnings: a P/E of 25.9x against 23.2x for Dover.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Dover
DOV
7/11
Gross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityShare count change
Xylem
XYL
4/11
Revenue growth5-year growthPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | DOV FY25 | XYL FY25 |
|---|---|---|
| Size | ||
| Market cap | $26.9B | $25.7B |
| Revenue | $8.1B | $9.0B |
| Free cash flow | $1.1B | $910M |
| Net income | $1.1B | $957M |
| Growth | ||
| Revenue growth | 4.5% | 5.5% |
| 5-year growth | 3.9% | 13.1% |
| Share count change | −0.7% | 0.2% |
| Profitability | ||
| Gross margin | 39.8% | 38.5% |
| Operating margin | 17.0% | 13.5% |
| Net margin | 13.5% | 10.6% |
| FCF margin | 13.8% | 10.1% |
| Return on capital | 12.0% | 8.1% |
| Return on equity | 15.2% | 8.7% |
| Balance sheet | ||
| Net debt | $2.4B | $1.1B |
| Net debt / EBITDA | 1.4x | 0.6x |
| Dividends and buybacks | $824M | $406M |
| Valuation & quality | ||
| P/E | 23.2x | 25.9x |
| 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.