ESCO Technologies Inc. (ESE) vs Garmin Ltd. (GRMN)

ESCO Technologies Inc. and Garmin Ltd. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $57.3B against $7.0B — 8.2× the size. ESCO Technologies Inc. trades at the lower P/E: 22.1× against 30.2×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 24.4%) and the higher return on invested capital (20.8% vs 7.76%). Both pay a dividend; Garmin Ltd. yields more (2.42% vs 0.31%). Across the 23 metrics below, Garmin Ltd. leads on 12 and ESCO Technologies Inc. on 11.

Valuation

Metric ESE GRMN Scientific & Technical Instruments median
P/E 22.09 30.17 35.93
P/S 5.38 7.39 4.46
P/B 4.30 6.28 3.00
Price to free cash flow 35.35 35.54 24.96
EV/EBITDA 22.54 23.39 19.60
EV/Sales 5.39 7.05 4.98
Earnings yield 4.53% 3.31% 0.53%
Free cash flow yield 2.83% 2.81% 1.12%

Profitability

Metric ESE GRMN Scientific & Technical Instruments median
Gross margin 42.01% 60.08% 45.75%
Operating margin 15.66% 27.61% 7.34%
Net margin 24.39% 24.47% 1.56%
Free cash flow margin 15.23% 20.85% 5.84%
Return on equity 21.39% 21.89% 2.87%
Return on assets 12.73% 17.26% 0.99%
Return on invested capital 7.76% 20.81% 3.88%

Growth

Metric ESE GRMN Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 13.51% 11.28%
EPS growth (last fiscal year) 193.15% 17.67% —
Revenue growth, 5-year CAGR 8.44% 11.59% 7.89%
Net income growth, 5-year CAGR 24.66% 10.89% 0.00%

Health

Metric ESE GRMN Scientific & Technical Instruments median
Debt to equity 0.05 0.00 0.00
Current ratio 1.38 3.03 2.24
Net debt to EBITDA 0.34 (1.33) 0.44

Dividend

Metric ESE GRMN Scientific & Technical Instruments median
Dividend yield 0.31% 2.42% 0.72%
Payout ratio 0.09 0.56 0.00

Size

Metric ESE GRMN Scientific & Technical Instruments median
Market cap 6.95b 57.28b 483.67m

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