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 $55.0B against $7.8B — 7.0× the size. ESCO Technologies Inc. trades at the lower P/E: 20.5× against 29.3×. 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 (2.10% vs 0.13%). 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 20.52 29.26 33.25
P/S 5.00 7.17 4.50
P/B 3.99 6.09 2.90
Price to free cash flow 32.83 34.47 24.81
EV/EBITDA 20.94 22.65 17.92
EV/Sales 5.01 6.82 4.71
Earnings yield 4.87% 3.42% 0.60%
Free cash flow yield 3.05% 2.90% 1.27%

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% 11.15%
EPS growth (last fiscal year) 193.15% 17.67% 11.47%
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 0.13% 2.10% 0.58%
Payout ratio 0.03 0.62 0.36

Size

Metric ESE GRMN Scientific & Technical Instruments median
Market cap 7.83b 55.01b 444.25m

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