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 $55.2B against $7.0B — 7.9× the size. ESCO Technologies Inc. trades at the lower P/E: 19.0× against 27.2×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 13.6%. Garmin Ltd. has the higher net margin (25.6% vs 24.4%) and the higher return on invested capital (19.7% vs 7.76%). Both pay a dividend; Garmin Ltd. yields more (1.37% vs 0.14%). 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 18.99 27.24 28.21
P/S 4.63 6.97 4.46
P/B 3.69 5.76 3.10
Price to free cash flow 30.38 37.55 24.15
EV/EBITDA 19.38 21.33 18.28
EV/Sales 4.64 6.68 4.64
Earnings yield 5.27% 3.67% 0.68%
Free cash flow yield 3.29% 2.66% 1.98%

Profitability

Metric ESE GRMN Scientific & Technical Instruments median
Gross margin 42.01% 61.12% 47.24%
Operating margin 15.66% 28.82% 8.96%
Net margin 24.39% 25.58% 1.92%
Free cash flow margin 15.23% 18.61% 10.59%
Return on equity 21.39% 22.38% 2.66%
Return on assets 12.73% 17.92% 1.12%
Return on invested capital 7.76% 19.70% 4.79%

Growth

Metric ESE GRMN Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 13.59% 9.26%
EPS growth (last fiscal year) 193.15% 17.67% 13.24%
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 3.05 2.30
Net debt to EBITDA 0.34 (1.33) 0.45

Dividend

Metric ESE GRMN Scientific & Technical Instruments median
Dividend yield 0.14% 1.37% 0.62%
Payout ratio 0.03 0.37 0.22

Size

Metric ESE GRMN Scientific & Technical Instruments median
Market cap 7.00b 55.19b 549.07m

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