ESCO Technologies Inc. (ESE) vs Fortive Corporation (FTV)

ESCO Technologies Inc. and Fortive Corporation are both Scientific & Technical Instruments companies. Fortive Corporation is the larger, with a market value of $16.7B against $7.0B — 2.4× the size. ESCO Technologies Inc. trades at the lower P/E: 22.1× against 32.6×. Fortive Corporation grew revenue faster over the last twelve months: 43.2% against 34.3%. ESCO Technologies Inc. has the higher net margin (24.4% vs 12.4%) and the higher return on invested capital (7.76% vs 5.34%). Both pay a dividend; Fortive Corporation yields more (0.38% vs 0.31%). Across the 23 metrics below, ESCO Technologies Inc. leads on 12 and Fortive Corporation on 11.

Valuation

Metric ESE FTV Scientific & Technical Instruments median
P/E 22.09 32.61 35.93
P/S 5.38 3.95 4.46
P/B 4.30 2.81 3.00
Price to free cash flow 35.35 18.20 24.96
EV/EBITDA 22.54 17.09 19.60
EV/Sales 5.39 4.89 4.98
Earnings yield 4.53% 3.07% 0.53%
Free cash flow yield 2.83% 5.50% 1.12%

Profitability

Metric ESE FTV Scientific & Technical Instruments median
Gross margin 42.01% 63.23% 45.75%
Operating margin 15.66% 18.23% 7.34%
Net margin 24.39% 12.38% 1.56%
Free cash flow margin 15.23% 21.72% 5.84%
Return on equity 21.39% 6.49% 2.87%
Return on assets 12.73% 3.58% 0.99%
Return on invested capital 7.76% 5.34% 3.88%

Growth

Metric ESE FTV Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 43.22% 11.28%
EPS growth (last fiscal year) 193.15% (26.69%) —
Revenue growth, 5-year CAGR 8.44% (2.14%) 7.89%
Net income growth, 5-year CAGR 24.66% (17.81%) 0.00%

Health

Metric ESE FTV Scientific & Technical Instruments median
Debt to equity 0.05 0.58 0.00
Current ratio 1.38 1.24 2.24
Net debt to EBITDA 0.34 2.44 0.44

Dividend

Metric ESE FTV Scientific & Technical Instruments median
Dividend yield 0.31% 0.38% 0.72%
Payout ratio 0.09 0.13 0.00

Size

Metric ESE FTV Scientific & Technical Instruments median
Market cap 6.95b 16.74b 483.67m

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