Coherent Corp. (COHR) vs Garmin Ltd. (GRMN)

Coherent Corp. and Garmin Ltd. are both Scientific & Technical Instruments companies. Coherent Corp. and Garmin Ltd. are of similar size ($58.5B and $57.3B). Garmin Ltd. trades at the lower P/E: 30.2× against 68.0×. Coherent Corp. grew revenue faster over the last twelve months: 22.5% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 10.8%) and the higher return on invested capital (20.8% vs 4.21%). Both pay a dividend; Garmin Ltd. yields more (2.42% vs 0.10%). Across the 22 metrics below, Garmin Ltd. leads on 16 and Coherent Corp. on 6.

Valuation

Metric COHR GRMN Scientific & Technical Instruments median
P/E 68.01 30.17 35.93
P/S 7.37 7.39 4.46
P/B 4.67 6.28 3.00
Price to free cash flow n/m 35.54 24.96
EV/EBITDA 38.94 23.39 19.60
EV/Sales 7.54 7.05 4.98
Earnings yield 1.47% 3.31% 0.53%
Free cash flow yield (1.95%) 2.81% 1.12%

Profitability

Metric COHR GRMN Scientific & Technical Instruments median
Gross margin 37.50% 60.08% 45.75%
Operating margin 11.77% 27.61% 7.34%
Net margin 10.82% 24.47% 1.56%
Free cash flow margin (14.38%) 20.85% 5.84%
Return on equity 8.93% 21.89% 2.87%
Return on assets 4.64% 17.26% 0.99%
Return on invested capital 4.21% 20.81% 3.88%

Growth

Metric COHR GRMN Scientific & Technical Instruments median
Revenue growth (TTM) 22.51% 13.51% 11.28%
EPS growth (last fiscal year) 892.31% 17.67% —
Revenue growth, 5-year CAGR 18.04% 11.59% 7.89%
Net income growth, 5-year CAGR 24.22% 10.89% 0.00%

Health

Metric COHR GRMN Scientific & Technical Instruments median
Debt to equity 0.29 0.00 0.00
Current ratio 2.43 3.03 2.24
Net debt to EBITDA 0.87 (1.33) 0.44

Dividend

Metric COHR GRMN Scientific & Technical Instruments median
Dividend yield 0.10% 2.42% 0.72%
Payout ratio 0.00 0.56 0.00

Size

Metric COHR GRMN Scientific & Technical Instruments median
Market cap 58.46b 57.28b 483.67m

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