ESCO Technologies Inc. (ESE) vs Ituran Location and Control Ltd. (ITRN)

ESCO Technologies Inc. and Ituran Location and Control Ltd. are both Scientific & Technical Instruments companies. ESCO Technologies Inc. is the larger, with a market value of $7.0B against $990.4M — 7.1× the size. Ituran Location and Control Ltd. trades at the lower P/E: 15.4× against 19.0×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 15.8%. ESCO Technologies Inc. has the higher net margin (24.4% vs 16.3%) and the lower return on invested capital (7.76% vs 44.0%). Both pay a dividend; Ituran Location and Control Ltd. yields more (6.02% vs 0.14%). Across the 23 metrics below, Ituran Location and Control Ltd. leads on 18 and ESCO Technologies Inc. on 5.

Valuation

Metric ESE ITRN Scientific & Technical Instruments median
P/E 18.99 15.37 28.21
P/S 4.63 2.50 4.46
P/B 3.69 4.37 3.10
Price to free cash flow 30.38 12.23 24.15
EV/EBITDA 19.38 8.39 18.28
EV/Sales 4.64 2.24 4.64
Earnings yield 5.27% 6.51% 0.68%
Free cash flow yield 3.29% 8.17% 1.98%

Profitability

Metric ESE ITRN Scientific & Technical Instruments median
Gross margin 42.01% 49.95% 47.24%
Operating margin 15.66% 21.83% 8.96%
Net margin 24.39% 16.28% 1.92%
Free cash flow margin 15.23% 20.47% 10.59%
Return on equity 21.39% 30.72% 2.66%
Return on assets 12.73% 16.57% 1.12%
Return on invested capital 7.76% 44.04% 4.79%

Growth

Metric ESE ITRN Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 15.79% 9.26%
EPS growth (last fiscal year) 193.15% 8.15% 13.24%
Revenue growth, 5-year CAGR 8.44% 7.89% 7.89%
Net income growth, 5-year CAGR 24.66% 29.17% 0.00%

Health

Metric ESE ITRN Scientific & Technical Instruments median
Debt to equity 0.05 0.00 0.00
Current ratio 1.38 2.03 2.30
Net debt to EBITDA 0.34 (1.12) 0.45

Dividend

Metric ESE ITRN Scientific & Technical Instruments median
Dividend yield 0.14% 6.02% 0.62%
Payout ratio 0.03 0.93 0.22

Size

Metric ESE ITRN Scientific & Technical Instruments median
Market cap 7.00b 990.39m 549.07m

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