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 $17.5B against $7.8B — 2.2× the size. ESCO Technologies Inc. trades at the lower P/E: 20.5× against 33.6×. 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 (0.43% vs 0.13%). 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 20.52 33.60 33.25
P/S 5.00 4.07 4.50
P/B 3.99 2.90 2.90
Price to free cash flow 32.83 18.75 24.81
EV/EBITDA 20.94 17.51 17.92
EV/Sales 5.01 5.01 4.71
Earnings yield 4.87% 2.98% 0.60%
Free cash flow yield 3.05% 5.33% 1.27%

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% 11.15%
EPS growth (last fiscal year) 193.15% (26.69%) 11.47%
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 0.13% 0.43% 0.58%
Payout ratio 0.03 0.15 0.36

Size

Metric ESE FTV Scientific & Technical Instruments median
Market cap 7.83b 17.45b 444.25m

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