U.S. Markets closed

How Has Pentair Performed Compared to Its Peers?

Gabriel Kane

US Equity Market Update for October 20, 2015

(Continued from Prior Part)

Pentair and its peers

An analysis of Pentair (PNR) and its peers is as follows:

  • The PE (price-to-earnings) ratios of Pentair, Emerson Electric (EMR), Dover (DOV), Xylem (XYL), and A. O. Smith (AOS) are 17.05x, 12.78x, 15.16x, 18.75x, and 27.33x, respectively.

  • The PBV (price-to-book value) ratios of Pentair, Emerson, Dover, Xylem, and A. O. Smith are 2.05x, 3.51x, 2.72x, 3.04x, and 4.39x, respectively.
  • The EPS (earnings per share) of Pentair and Dover are $0.63 and $1.19, respectively, in 3Q15.

Thus, Pentair’s peers have outperformed it based on PBV.

ETFs that invest in Pentair

The PowerShares Global Water ETF (PIO) invests 8.3% of its holdings in Pentair. The ETF tracks a modified liquidity-weighted index of global companies that create products to conserve and purify water for homes, businesses, and industries.

The PowerShares Water Resource ETF (PHO) invests 8.0% of its holdings in Pentair. The ETF tracks a modified liquidity-weighted index of US-listed companies that create products to conserve and purify water.

The Guggenheim S&P Global Water ETF (CGW) invests 6.3% of its holdings in Pentair. The ETF aims to track a market-cap–weighted index of global water utilities, infrastructure, and water equipment and material companies.

Pentair and its ETFs compared

An analysis of Pentair and its ETFs is as follows:

  • The year-to-date price movements of Pentair, PIO, PHO, and CGW are -16.9%, -3.9%, -13.6%, and 0.61%, respectively.
  • The PE (price-to-earnings) ratios of Pentair, PIO, PHO, and CGW are 17.05x, 22.01x, 37.75x, and 23.53x, respectively.
  • The PBV (price-to-book value) ratios of Pentair, PIO, PHO, and CGW are 2.15x, 2.32x, 2.62x, and 2.36x, respectively.

Thus, the ETFs have outperformed Pentair based on price movement, PE, and PBV.

Continue to Next Part

Browse this series on Market Realist: