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 $14.5B against $148.0M — 98.1× the size. Eastern Company (The) trades at the lower P/E: 18.3× against 26.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against −11.9%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 3.39%) and the higher return on invested capital (19.5% vs 2.86%). Both pay a dividend; Eastern Company (The) yields more (1.81% vs 1.12%). 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 18.27 26.90 25.91
P/S 0.62 3.31 1.36
P/B 1.13 9.56 1.98
Price to free cash flow 9.70 27.22 18.96
EV/EBITDA 13.02 18.30 13.02
EV/Sales 0.76 3.55 1.27
Earnings yield 5.47% 3.72% 3.72%
Free cash flow yield 10.31% 3.67% 4.42%

Profitability

Metric EML LECO Tools & Accessories median
Gross margin 21.56% 35.96% 33.41%
Operating margin 3.07% 17.13% 10.31%
Net margin 3.39% 12.35% 5.43%
Free cash flow margin 6.41% 12.18% 8.16%
Return on equity 6.32% 37.74% 7.80%
Return on assets 3.39% 14.68% 3.79%
Return on invested capital 2.86% 19.49% 6.23%

Growth

Metric EML LECO Tools & Accessories median
Revenue growth (TTM) (11.91%) 9.32% 5.45%
EPS growth (last fiscal year) 185.40% 14.36% —
Revenue growth, 5-year CAGR 4.73% 9.78% 5.45%
Net income growth, 5-year CAGR 5.70% 20.36% 0.27%

Health

Metric EML LECO Tools & Accessories median
Debt to equity 0.34 0.74 0.44
Current ratio 2.80 1.98 2.62
Net debt to EBITDA 1.71 1.21 1.21

Dividend

Metric EML LECO Tools & Accessories median
Dividend yield 1.81% 1.12% 2.20%
Payout ratio 0.41 0.30 0.35

Size

Metric EML LECO Tools & Accessories median
Market cap 148.02m 14.52b 8.25b

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