Badger Meter, Inc. (BMI) vs ESCO Technologies Inc. (ESE)

Badger Meter, Inc. and ESCO Technologies Inc. are both Scientific & Technical Instruments companies. ESCO Technologies Inc. is the larger, with a market value of $7.8B against $3.7B — 2.1× the size. ESCO Technologies Inc. trades at the lower P/E: 20.5× against 29.6×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 0.80%. ESCO Technologies Inc. has the higher net margin (24.4% vs 14.3%) and the lower return on invested capital (7.76% vs 17.4%). Both pay a dividend; Badger Meter, Inc. yields more (1.29% vs 0.13%). Across the 23 metrics below, Badger Meter, Inc. leads on 14 and ESCO Technologies Inc. on 9.

Valuation

Metric BMI ESE Scientific & Technical Instruments median
P/E 29.62 20.52 33.25
P/S 4.19 5.00 4.50
P/B 5.40 3.99 2.90
Price to free cash flow 24.55 32.83 24.81
EV/EBITDA 17.96 20.94 17.92
EV/Sales 4.08 5.01 4.71
Earnings yield 3.38% 4.87% 0.60%
Free cash flow yield 4.07% 3.05% 1.27%

Profitability

Metric BMI ESE Scientific & Technical Instruments median
Gross margin 41.31% 42.01% 45.75%
Operating margin 18.58% 15.66% 7.34%
Net margin 14.27% 24.39% 1.56%
Free cash flow margin 17.06% 15.23% 5.84%
Return on equity 18.48% 21.39% 2.87%
Return on assets 13.00% 12.73% 0.99%
Return on invested capital 17.42% 7.76% 3.88%

Growth

Metric BMI ESE Scientific & Technical Instruments median
Revenue growth (TTM) 0.80% 34.33% 11.15%
EPS growth (last fiscal year) 13.24% 193.15% 11.47%
Revenue growth, 5-year CAGR 16.59% 8.44% 7.89%
Net income growth, 5-year CAGR 23.48% 24.66% 0.00%

Health

Metric BMI ESE Scientific & Technical Instruments median
Debt to equity 0.00 0.05 0.00
Current ratio 2.42 1.38 2.24
Net debt to EBITDA (1.04) 0.34 0.44

Dividend

Metric BMI ESE Scientific & Technical Instruments median
Dividend yield 1.29% 0.13% 0.58%
Payout ratio 0.38 0.03 0.36

Size

Metric BMI ESE Scientific & Technical Instruments median
Market cap 3.68b 7.83b 444.25m

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