Eastern Company (The) (EML) vs Lincoln Electric Holdings, Inc. (LECO)

Eastern Company (The) and Lincoln Electric Holdings, Inc. are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. is the larger, with a market value of $14.7B against $163.7M — 90.0× the size. Eastern Company (The) trades at the lower P/E: 20.3× against 25.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against −11.9%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 3.39%) and the higher return on invested capital (20.7% vs 2.86%). Both pay a dividend; Eastern Company (The) yields more (1.62% vs 1.16%). Across the 23 metrics below, Eastern Company (The) leads on 12 and Lincoln Electric Holdings, Inc. on 11.

Valuation

Metric EML LECO Tools & Accessories median
P/E 20.26 25.89 23.82
P/S 0.69 3.19 1.27
P/B 1.26 9.54 3.60
Price to free cash flow 10.76 28.59 15.76
EV/EBITDA 14.18 17.49 12.84
EV/Sales 0.83 3.42 1.66
Earnings yield 4.94% 3.86% 4.03%
Free cash flow yield 9.30% 3.50% 5.82%

Profitability

Metric EML LECO Tools & Accessories median
Gross margin 21.56% 35.49% 34.62%
Operating margin 3.07% 17.29% 10.65%
Net margin 3.39% 12.40% 6.76%
Free cash flow margin 6.41% 11.17% 9.30%
Return on equity 6.32% 38.75% 10.51%
Return on assets 3.39% 14.93% 4.19%
Return on invested capital 2.86% 20.71% 7.05%

Growth

Metric EML LECO Tools & Accessories median
Revenue growth (TTM) (11.91%) 11.13% 6.18%
EPS growth (last fiscal year) 185.40% 14.36% 35.90%
Revenue growth, 5-year CAGR 4.73% 9.78% 5.26%
Net income growth, 5-year CAGR 5.70% 20.36% 2.99%

Health

Metric EML LECO Tools & Accessories median
Debt to equity 0.34 0.74 0.53
Current ratio 2.80 1.91 2.60
Net debt to EBITDA 1.71 1.21 1.21

Dividend

Metric EML LECO Tools & Accessories median
Dividend yield 1.62% 1.16% 1.55%
Payout ratio 0.33 0.30 0.34

Size

Metric EML LECO Tools & Accessories median
Market cap 163.74m 14.74b 7.39b

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