ESCO Technologies Inc. (ESE) vs Itron, Inc. (ITRI)

ESCO Technologies Inc. and Itron, Inc. are both Scientific & Technical Instruments companies. ESCO Technologies Inc. is the larger, with a market value of $7.0B against $4.4B — 1.6× the size. Itron, Inc. trades at the lower P/E: 15.6× against 19.0×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against −3.63%. ESCO Technologies Inc. has the higher net margin (24.4% vs 12.1%) and the lower return on invested capital (7.76% vs 8.09%). Across the 22 metrics below, ESCO Technologies Inc. leads on 11 and Itron, Inc. on 11.

Valuation

Metric ESE ITRI Scientific & Technical Instruments median
P/E 18.99 15.61 28.21
P/S 4.63 1.85 4.46
P/B 3.69 2.50 3.10
Price to free cash flow 30.38 11.70 24.15
EV/EBITDA 19.38 13.95 18.28
EV/Sales 4.64 2.37 4.64
Earnings yield 5.27% 6.40% 0.68%
Free cash flow yield 3.29% 8.55% 1.98%

Profitability

Metric ESE ITRI Scientific & Technical Instruments median
Gross margin 42.01% 40.66% 47.24%
Operating margin 15.66% 13.69% 8.96%
Net margin 24.39% 12.05% 1.92%
Free cash flow margin 15.23% 15.84% 10.59%
Return on equity 21.39% 16.30% 2.66%
Return on assets 12.73% 7.15% 1.12%
Return on invested capital 7.76% 8.09% 4.79%

Growth

Metric ESE ITRI Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% (3.63%) 9.26%
EPS growth (last fiscal year) 193.15% 25.48% 13.24%
Revenue growth, 5-year CAGR 8.44% 1.72% 7.89%
Net income growth, 5-year CAGR 24.66% 0.00% 0.00%

Health

Metric ESE ITRI Scientific & Technical Instruments median
Debt to equity 0.05 0.92 0.00
Current ratio 1.38 2.83 2.30
Net debt to EBITDA 0.34 0.62 0.45

Dividend

Metric ESE ITRI Scientific & Technical Instruments median
Dividend yield 0.14% — 0.62%
Payout ratio 0.03 — 0.22

Size

Metric ESE ITRI Scientific & Technical Instruments median
Market cap 7.00b 4.36b 549.07m

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