Cognex Corporation (CGNX) vs Garmin Ltd. (GRMN)

Cognex Corporation and Garmin Ltd. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $57.3B against $9.8B — 5.8× the size. Garmin Ltd. trades at the lower P/E: 30.2× against 55.9×. Cognex Corporation grew revenue faster over the last twelve months: 17.2% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 16.1%) and the higher return on invested capital (20.8% vs 12.2%). Both pay a dividend; Garmin Ltd. yields more (2.42% vs 0.82%). Across the 22 metrics below, Garmin Ltd. leads on 16 and Cognex Corporation on 6.

Valuation

Metric CGNX GRMN Scientific & Technical Instruments median
P/E 55.87 30.17 35.93
P/S 9.01 7.39 4.46
P/B 6.02 6.28 3.00
Price to free cash flow 37.11 35.54 24.96
EV/EBITDA 35.29 23.39 19.60
EV/Sales 8.64 7.05 4.98
Earnings yield 1.79% 3.31% 0.53%
Free cash flow yield 2.69% 2.81% 1.12%

Profitability

Metric CGNX GRMN Scientific & Technical Instruments median
Gross margin 68.87% 60.08% 45.75%
Operating margin 21.90% 27.61% 7.34%
Net margin 16.05% 24.47% 1.56%
Free cash flow margin 25.25% 20.85% 5.84%
Return on equity 11.15% 21.89% 2.87%
Return on assets 8.36% 17.26% 0.99%
Return on invested capital 12.16% 20.81% 3.88%

Growth

Metric CGNX GRMN Scientific & Technical Instruments median
Revenue growth (TTM) 17.15% 13.51% 11.28%
EPS growth (last fiscal year) 9.68% 17.67% —
Revenue growth, 5-year CAGR 4.16% 11.59% 7.89%
Net income growth, 5-year CAGR (8.27%) 10.89% 0.00%

Health

Metric CGNX GRMN Scientific & Technical Instruments median
Debt to equity 0.00 0.00 0.00
Current ratio 3.93 3.03 2.24
Net debt to EBITDA (1.75) (1.33) 0.44

Dividend

Metric CGNX GRMN Scientific & Technical Instruments median
Dividend yield 0.82% 2.42% 0.72%
Payout ratio 0.28 0.56 0.00

Size

Metric CGNX GRMN Scientific & Technical Instruments median
Market cap 9.82b 57.28b 483.67m

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