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 $61.0B against $7.0B — 8.8× the size. ESCO Technologies Inc. trades at the lower P/E: 22.1× against 49.3×. 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 22.09 49.27 35.93
P/S 5.38 9.41 4.46
P/B 4.30 9.42 3.00
Price to free cash flow 35.35 41.51 24.96
EV/EBITDA 22.54 35.83 19.60
EV/Sales 5.39 9.40 4.98
Earnings yield 4.53% 2.03% 0.53%
Free cash flow yield 2.83% 2.41% 1.12%

Profitability

Metric ESE KEYS Scientific & Technical Instruments median
Gross margin 42.01% 64.69% 45.75%
Operating margin 15.66% 20.25% 7.34%
Net margin 24.39% 19.14% 1.56%
Free cash flow margin 15.23% 22.67% 5.84%
Return on equity 21.39% 20.59% 2.87%
Return on assets 12.73% 11.16% 0.99%
Return on invested capital 7.76% 12.85% 3.88%

Growth

Metric ESE KEYS Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 25.54% 11.28%
EPS growth (last fiscal year) 193.15% 39.32% —
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 2.24
Net debt to EBITDA 0.34 0.57 0.44

Dividend

Metric ESE KEYS Scientific & Technical Instruments median
Dividend yield 0.31% — 0.72%
Payout ratio 0.09 0.00 0.00

Size

Metric ESE KEYS Scientific & Technical Instruments median
Market cap 6.95b 61.04b 483.67m

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