Eaton vs Vertiv
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The short version
- Eaton is the larger business, with $27.4B of revenue in fiscal 2025 against $10.2B for Vertiv, about 2.7 times as much.
- Vertiv grew revenue faster (27.7%, against 10.3%).
- Vertiv turned more of its sales into free cash flow (18.5% FCF margin, against 12.9%).
- Vertiv earned a higher return on the capital invested in it (30.2%, against 15.8%).
- Investors pay more for each dollar of Vertiv’s earnings: a P/E of 44.0x against 37.2x for Eaton.
| Latest fiscal year | ETN · FY25 | VRT · FY25 |
|---|---|---|
| Size | ||
| Market cap | $142.6B | $76.3B |
| Revenue | $27.4B | $10.2B |
| Free cash flow | $3.6B | $1.9B |
| Net income | $4.1B | $1.3B |
| Growth | ||
| Revenue growth | 10.3% | 27.7% |
| 5-year growth | 9.0% | 18.5% |
| Share count change | −2.1% | 1.1% |
| Profitability | ||
| Gross margin | 37.6% | 36.3% |
| Operating margin | — | 17.9% |
| Net margin | 14.9% | 13.0% |
| FCF margin | 12.9% | 18.5% |
| Return on capital | 15.8% | 30.2% |
| Return on equity | 21.6% | 41.8% |
| Balance sheet | ||
| Net debt | $9.1B | $1.2B |
| Net debt / EBITDA | 1.5x | 0.6x |
| Dividends and buybacks | $3.5B | $66.6M |
| Valuation & quality | ||
| P/E | 37.2x | 44.0x |
| Piotroski F-score | 6 | 6 |
Revenue
FY16
ETN $0.0M
VRT —
FY17
ETN $20.4B
VRT —
FY18
ETN $21.6B
VRT —
FY19
ETN $21.4B
VRT $4.4B
FY20
ETN $17.9B
VRT $4.4B
FY21
ETN $19.6B
VRT $5.0B
FY22
ETN $20.8B
VRT $5.7B
FY23
ETN $23.2B
VRT $6.9B
FY24
ETN $24.9B
VRT $8.0B
FY25
ETN $27.4B
VRT $10.2B
ETN
VRT
Operating margin
FY16
ETN —
VRT —
FY17
ETN 15.8%
VRT —
FY18
ETN 16.8%
VRT —
FY19
ETN 17.2%
VRT 4.7%
FY20
ETN —
VRT 4.9%
FY21
ETN —
VRT 5.2%
FY22
ETN —
VRT 3.9%
FY23
ETN —
VRT 12.7%
FY24
ETN —
VRT 17.1%
FY25
ETN —
VRT 17.9%
ETN
VRT
Free cash flow
FY16
ETN $2.1B
VRT —
FY17
ETN $2.1B
VRT —
FY18
ETN $2.1B
VRT —
FY19
ETN $2.9B
VRT $9.9M
FY20
ETN $2.6B
VRT $165M
FY21
ETN $1.6B
VRT $138M
FY22
ETN $1.9B
VRT −$253M
FY23
ETN $2.9B
VRT $773M
FY24
ETN $3.5B
VRT $1.2B
FY25
ETN $3.6B
VRT $1.9B
ETN
VRT
Return on capital
FY16
ETN 11.7%
VRT —
FY17
ETN 12.3%
VRT —
FY18
ETN 13.6%
VRT —
FY19
ETN 13.3%
VRT —
FY20
ETN 6.7%
VRT 7.2%
FY21
ETN 9.7%
VRT 6.2%
FY22
ETN 10.8%
VRT 2.7%
FY23
ETN 13.2%
VRT 17.6%
FY24
ETN 15.2%
VRT 21.3%
FY25
ETN 15.8%
VRT 30.2%
ETN
VRT
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.