Coherent Corp. (COHR) vs Fortive Corporation (FTV)

Coherent Corp. and Fortive Corporation are both Scientific & Technical Instruments companies. Coherent Corp. is the larger, with a market value of $58.5B against $16.7B — 3.5× the size. Fortive Corporation trades at the lower P/E: 32.6× against 68.0×. Fortive Corporation grew revenue faster over the last twelve months: 43.2% against 22.5%. Fortive Corporation has the higher net margin (12.4% vs 10.8%) and the higher return on invested capital (5.34% vs 4.21%). Both pay a dividend; Fortive Corporation yields more (0.38% vs 0.10%). Across the 22 metrics below, Fortive Corporation leads on 14 and Coherent Corp. on 8.

Valuation

Metric COHR FTV Scientific & Technical Instruments median
P/E 68.01 32.61 35.93
P/S 7.37 3.95 4.46
P/B 4.67 2.81 3.00
Price to free cash flow n/m 18.20 24.96
EV/EBITDA 38.94 17.09 19.60
EV/Sales 7.54 4.89 4.98
Earnings yield 1.47% 3.07% 0.53%
Free cash flow yield (1.95%) 5.50% 1.12%

Profitability

Metric COHR FTV Scientific & Technical Instruments median
Gross margin 37.50% 63.23% 45.75%
Operating margin 11.77% 18.23% 7.34%
Net margin 10.82% 12.38% 1.56%
Free cash flow margin (14.38%) 21.72% 5.84%
Return on equity 8.93% 6.49% 2.87%
Return on assets 4.64% 3.58% 0.99%
Return on invested capital 4.21% 5.34% 3.88%

Growth

Metric COHR FTV Scientific & Technical Instruments median
Revenue growth (TTM) 22.51% 43.22% 11.28%
EPS growth (last fiscal year) 892.31% (26.69%) —
Revenue growth, 5-year CAGR 18.04% (2.14%) 7.89%
Net income growth, 5-year CAGR 24.22% (17.81%) 0.00%

Health

Metric COHR FTV Scientific & Technical Instruments median
Debt to equity 0.29 0.58 0.00
Current ratio 2.43 1.24 2.24
Net debt to EBITDA 0.87 2.44 0.44

Dividend

Metric COHR FTV Scientific & Technical Instruments median
Dividend yield 0.10% 0.38% 0.72%
Payout ratio 0.00 0.13 0.00

Size

Metric COHR FTV Scientific & Technical Instruments median
Market cap 58.46b 16.74b 483.67m

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