Emerson Electric vs Vertiv
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The short version
- Emerson Electric is the larger business, with $18.0B of revenue in fiscal 2025 against $10.2B for Vertiv, about 1.8 times as much.
- Vertiv grew revenue faster (27.7%, against 3.0%).
- Vertiv turned more of its sales into free cash flow (18.5% FCF margin, against 14.8%).
- Vertiv earned a higher return on the capital invested in it (30.2%, against 7.6%).
- Investors pay more for each dollar of Vertiv’s earnings: a P/E of 44.0x against 35.4x for Emerson Electric.
| Latest fiscal year | EMR · FY25 | VRT · FY25 |
|---|---|---|
| Size | ||
| Market cap | $90.7B | $76.3B |
| Revenue | $18.0B | $10.2B |
| Free cash flow | $2.7B | $1.9B |
| Net income | $2.3B | $1.3B |
| Growth | ||
| Revenue growth | 3.0% | 27.7% |
| 5-year growth | 1.4% | 18.5% |
| Share count change | −1.3% | 1.1% |
| Profitability | ||
| Gross margin | 52.8% | 36.3% |
| Operating margin | — | 17.9% |
| Net margin | 12.7% | 13.0% |
| FCF margin | 14.8% | 18.5% |
| Return on capital | 7.6% | 30.2% |
| Return on equity | 10.9% | 41.8% |
| Balance sheet | ||
| Net debt | $11.6B | $1.2B |
| Net debt / EBITDA | 2.5x | 0.6x |
| Dividends and buybacks | $2.4B | $66.6M |
| Valuation & quality | ||
| P/E | 35.4x | 44.0x |
| Piotroski F-score | 6 | 6 |
Revenue
FY16
EMR $14.5B
VRT —
FY17
EMR $15.3B
VRT —
FY18
EMR $17.4B
VRT —
FY19
EMR $18.4B
VRT $4.4B
FY20
EMR $16.8B
VRT $4.4B
FY21
EMR $12.9B
VRT $5.0B
FY22
EMR $13.8B
VRT $5.7B
FY23
EMR $15.2B
VRT $6.9B
FY24
EMR $17.5B
VRT $8.0B
FY25
EMR $18.0B
VRT $10.2B
EMR
VRT
Operating margin
FY16
EMR —
VRT —
FY17
EMR —
VRT —
FY18
EMR —
VRT —
FY19
EMR —
VRT 4.7%
FY20
EMR —
VRT 4.9%
FY21
EMR —
VRT 5.2%
FY22
EMR —
VRT 3.9%
FY23
EMR —
VRT 12.7%
FY24
EMR —
VRT 17.1%
FY25
EMR —
VRT 17.9%
EMR
VRT
Free cash flow
FY16
EMR $2.4B
VRT —
FY17
EMR $1.4B
VRT —
FY18
EMR $2.3B
VRT —
FY19
EMR $2.4B
VRT $9.9M
FY20
EMR $2.5B
VRT $165M
FY21
EMR $3.2B
VRT $138M
FY22
EMR $2.6B
VRT −$253M
FY23
EMR $274M
VRT $773M
FY24
EMR $2.9B
VRT $1.2B
FY25
EMR $2.7B
VRT $1.9B
EMR
VRT
Return on capital
FY16
EMR 15.5%
VRT —
FY17
EMR 17.0%
VRT —
FY18
EMR 20.7%
VRT —
FY19
EMR 19.8%
VRT —
FY20
EMR 17.0%
VRT 7.2%
FY21
EMR 11.4%
VRT 6.2%
FY22
EMR 10.4%
VRT 2.7%
FY23
EMR 9.4%
VRT 17.6%
FY24
EMR 6.0%
VRT 21.3%
FY25
EMR 7.6%
VRT 30.2%
EMR
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.