Eaton vs Vertiv
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KIRA’s take AI analyst
I put Eaton and Vertiv side by side, using each one’s latest annual report. Here is what stands out:
- 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 45.2x against 37.8x for Eaton.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Eaton
ETN
3/10
Gross marginNet marginShare count change
Vertiv
VRT
6/10
Revenue growth5-year growthFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | ETN FY25 | VRT FY25 |
|---|---|---|
| Size | ||
| Market cap | $144.9B | $78.5B |
| 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 | 37.8x | 45.2x |
| Piotroski F-score | 6 | 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.