ESAB Corporation (ESAB) vs Worthington Enterprises, Inc. (WOR)

ESAB Corporation and Worthington Enterprises, Inc. are both Metal Fabrication companies. ESAB Corporation is the larger, with a market value of $4.2B against $3.0B — 1.4× the size. Worthington Enterprises, Inc. trades at the lower P/E: 18.5× against 25.7×. Worthington Enterprises, Inc. grew revenue faster over the last twelve months: 18.4% against 9.65%. Worthington Enterprises, Inc. has the higher net margin (11.5% vs 5.70%) and the lower return on invested capital (3.85% vs 4.75%). Both pay a dividend; Worthington Enterprises, Inc. yields more (0.69% vs 0.24%). Across the 23 metrics below, Worthington Enterprises, Inc. leads on 13 and ESAB Corporation on 10.

Valuation

Metric ESAB WOR Metal Fabrication median
P/E 25.67 18.54 17.15
P/S 1.46 2.13 1.14
P/B 1.82 2.94 1.71
Price to free cash flow 22.10 15.30 22.10
EV/EBITDA 14.06 24.56 17.60
EV/Sales 2.19 2.31 1.96
Earnings yield 3.90% 5.39% 2.28%
Free cash flow yield 4.53% 6.54% 0.92%

Profitability

Metric ESAB WOR Metal Fabrication median
Gross margin 36.96% 27.22% 21.08%
Operating margin 12.07% 5.63% 5.14%
Net margin 5.70% 11.50% 4.70%
Free cash flow margin 6.62% 13.90% 1.45%
Return on equity 7.56% 0.00% 0.00%
Return on assets 3.11% 9.14% 1.56%
Return on invested capital 4.75% 3.85% 2.19%

Growth

Metric ESAB WOR Metal Fabrication median
Revenue growth (TTM) 9.65% 18.44% 9.93%
EPS growth (last fiscal year) (14.85%) 63.54% —
Revenue growth, 5-year CAGR 7.83% (15.32%) 6.12%
Net income growth, 5-year CAGR 7.57% (26.42%) 0.00%

Health

Metric ESAB WOR Metal Fabrication median
Debt to equity 0.93 0.29 0.30
Current ratio 1.96 2.67 2.08
Net debt to EBITDA 2.11 2.08 1.02

Dividend

Metric ESAB WOR Metal Fabrication median
Dividend yield 0.24% 0.69% 1.69%
Payout ratio 0.06 0.21 0.06

Size

Metric ESAB WOR Metal Fabrication median
Market cap 4.22b 2.95b 896.96m

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