Coherent Corp. (COHR) vs ESCO Technologies Inc. (ESE)

Coherent Corp. and ESCO Technologies Inc. are both Scientific & Technical Instruments companies. Coherent Corp. is the larger, with a market value of $49.4B against $7.8B — 6.3× the size. ESCO Technologies Inc. trades at the lower P/E: 20.5× against 53.5×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 22.5%. ESCO Technologies Inc. has the higher net margin (24.4% vs 10.8%) and the higher return on invested capital (7.76% vs 4.21%). Across the 21 metrics below, ESCO Technologies Inc. leads on 17 and Coherent Corp. on 4.

Valuation

Metric COHR ESE Scientific & Technical Instruments median
P/E 53.54 20.52 33.25
P/S 5.80 5.00 4.50
P/B 3.67 3.99 2.90
Price to free cash flow n/m 32.83 24.81
EV/EBITDA 30.84 20.94 17.92
EV/Sales 5.97 5.01 4.71
Earnings yield 1.87% 4.87% 0.60%
Free cash flow yield (2.48%) 3.05% 1.27%

Profitability

Metric COHR ESE Scientific & Technical Instruments median
Gross margin 37.50% 42.01% 45.75%
Operating margin 11.77% 15.66% 7.34%
Net margin 10.82% 24.39% 1.56%
Free cash flow margin (14.38%) 15.23% 5.84%
Return on equity 8.93% 21.39% 2.87%
Return on assets 4.64% 12.73% 0.99%
Return on invested capital 4.21% 7.76% 3.88%

Growth

Metric COHR ESE Scientific & Technical Instruments median
Revenue growth (TTM) 22.51% 34.33% 11.15%
EPS growth (last fiscal year) 892.31% 193.15% 11.47%
Revenue growth, 5-year CAGR 18.04% 8.44% 7.89%
Net income growth, 5-year CAGR 24.22% 24.66% 0.00%

Health

Metric COHR ESE Scientific & Technical Instruments median
Debt to equity 0.29 0.05 0.00
Current ratio 2.43 1.38 2.24
Net debt to EBITDA 0.87 0.34 0.44

Dividend

Metric COHR ESE Scientific & Technical Instruments median
Dividend yield — 0.13% 0.58%
Payout ratio — 0.03 0.36

Size

Metric COHR ESE Scientific & Technical Instruments median
Market cap 49.35b 7.83b 444.25m

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