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 $58.5B against $7.0B — 8.4× the size. ESCO Technologies Inc. trades at the lower P/E: 22.1× against 68.0×. 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%). Both pay a dividend; ESCO Technologies Inc. yields more (0.31% vs 0.10%). Across the 22 metrics below, ESCO Technologies Inc. leads on 19 and Coherent Corp. on 3.

Valuation

Metric COHR ESE Scientific & Technical Instruments median
P/E 68.01 22.09 35.93
P/S 7.37 5.38 4.46
P/B 4.67 4.30 3.00
Price to free cash flow n/m 35.35 24.96
EV/EBITDA 38.94 22.54 19.60
EV/Sales 7.54 5.39 4.98
Earnings yield 1.47% 4.53% 0.53%
Free cash flow yield (1.95%) 2.83% 1.12%

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% 11.28%
EPS growth (last fiscal year) 892.31% 193.15% —
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 0.10% 0.31% 0.72%
Payout ratio 0.00 0.09 0.00

Size

Metric COHR ESE Scientific & Technical Instruments median
Market cap 58.46b 6.95b 483.67m

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