ATI Inc. (ATI) vs ESAB Corporation (ESAB)

ATI Inc. and ESAB Corporation are both Metal Fabrication companies. ATI Inc. is the larger, with a market value of $25.4B against $4.2B — 6.0× the size. ESAB Corporation trades at the lower P/E: 25.7× against 53.3×. ESAB Corporation grew revenue faster over the last twelve months: 9.65% against 4.58%. ATI Inc. has the higher net margin (10.1% vs 5.70%) and the higher return on invested capital (13.2% vs 4.75%). Across the 22 metrics below, ESAB Corporation leads on 12 and ATI Inc. on 10.

Valuation

Metric ATI ESAB Metal Fabrication median
P/E 53.30 25.67 17.15
P/S 5.36 1.46 1.14
P/B 12.65 1.82 1.71
Price to free cash flow 46.57 22.10 22.10
EV/EBITDA 29.94 14.06 17.60
EV/Sales 5.66 2.19 1.96
Earnings yield 1.88% 3.90% 2.28%
Free cash flow yield 2.15% 4.53% 0.92%

Profitability

Metric ATI ESAB Metal Fabrication median
Gross margin 23.36% 36.96% 21.08%
Operating margin 15.20% 12.07% 5.14%
Net margin 10.09% 5.70% 4.70%
Free cash flow margin 11.51% 6.62% 1.45%
Return on equity 24.68% 7.56% 0.00%
Return on assets 8.84% 3.11% 1.56%
Return on invested capital 13.15% 4.75% 2.19%

Growth

Metric ATI ESAB Metal Fabrication median
Revenue growth (TTM) 4.58% 9.65% 9.93%
EPS growth (last fiscal year) 11.76% (14.85%) —
Revenue growth, 5-year CAGR 9.00% 7.83% 6.12%
Net income growth, 5-year CAGR 0.00% 7.57% 0.00%

Health

Metric ATI ESAB Metal Fabrication median
Debt to equity 1.10 0.93 0.30
Current ratio 2.33 1.96 2.08
Net debt to EBITDA 1.65 2.11 1.02

Dividend

Metric ATI ESAB Metal Fabrication median
Dividend yield — 0.24% 1.69%
Payout ratio 0.00 0.06 0.06

Size

Metric ATI ESAB Metal Fabrication median
Market cap 25.42b 4.22b 896.96m

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