ESCO Technologies Inc. (ESE) vs Keysight Technologies Inc. (KEYS)

ESCO Technologies Inc. and Keysight Technologies Inc. are both Scientific & Technical Instruments companies. Keysight Technologies Inc. is the larger, with a market value of $44.4B against $7.0B — 6.3× the size. ESCO Technologies Inc. trades at the lower P/E: 19.0× against 36.9×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 25.5%. ESCO Technologies Inc. has the higher net margin (24.4% vs 19.1%) and the lower return on invested capital (7.76% vs 12.9%). Across the 22 metrics below, ESCO Technologies Inc. leads on 17 and Keysight Technologies Inc. on 5.

Valuation

Metric ESE KEYS Scientific & Technical Instruments median
P/E 18.99 36.94 28.21
P/S 4.63 7.05 4.46
P/B 3.69 7.06 3.10
Price to free cash flow 30.38 31.11 24.15
EV/EBITDA 19.38 26.85 18.28
EV/Sales 4.64 7.04 4.64
Earnings yield 5.27% 2.71% 0.68%
Free cash flow yield 3.29% 3.21% 1.98%

Profitability

Metric ESE KEYS Scientific & Technical Instruments median
Gross margin 42.01% 64.69% 47.24%
Operating margin 15.66% 20.25% 8.96%
Net margin 24.39% 19.14% 1.92%
Free cash flow margin 15.23% 22.67% 10.59%
Return on equity 21.39% 20.59% 2.66%
Return on assets 12.73% 11.16% 1.12%
Return on invested capital 7.76% 12.85% 4.79%

Growth

Metric ESE KEYS Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 25.54% 9.26%
EPS growth (last fiscal year) 193.15% 39.32% 13.24%
Revenue growth, 5-year CAGR 8.44% 4.95% 7.89%
Net income growth, 5-year CAGR 24.66% 6.27% 0.00%

Health

Metric ESE KEYS Scientific & Technical Instruments median
Debt to equity 0.05 0.38 0.00
Current ratio 1.38 2.02 2.30
Net debt to EBITDA 0.34 0.57 0.45

Dividend

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

Size

Metric ESE KEYS Scientific & Technical Instruments median
Market cap 7.00b 44.37b 549.07m

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