ESCO Technologies Inc. (ESE) vs MKS Inc. (MKSI)

ESCO Technologies Inc. and MKS Inc. are both Scientific & Technical Instruments companies. MKS Inc. is the larger, with a market value of $12.0B against $7.0B — 1.7× the size. ESCO Technologies Inc. trades at the lower P/E: 19.0× against 21.5×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 24.6%. ESCO Technologies Inc. has the higher net margin (24.4% vs 12.6%) and the lower return on invested capital (7.76% vs 8.51%). Both pay a dividend; MKS Inc. yields more (0.51% vs 0.14%). Across the 23 metrics below, ESCO Technologies Inc. leads on 13 and MKS Inc. on 10.

Valuation

Metric ESE MKSI Scientific & Technical Instruments median
P/E 18.99 21.51 28.21
P/S 4.63 2.72 4.46
P/B 3.69 3.95 3.10
Price to free cash flow 30.38 23.39 24.15
EV/EBITDA 19.38 15.37 18.28
EV/Sales 4.64 3.37 4.64
Earnings yield 5.27% 4.65% 0.68%
Free cash flow yield 3.29% 4.28% 1.98%

Profitability

Metric ESE MKSI Scientific & Technical Instruments median
Gross margin 42.01% 47.24% 47.24%
Operating margin 15.66% 18.23% 8.96%
Net margin 24.39% 12.61% 1.92%
Free cash flow margin 15.23% 11.63% 10.59%
Return on equity 21.39% 20.46% 2.66%
Return on assets 12.73% 6.69% 1.12%
Return on invested capital 7.76% 8.51% 4.79%

Growth

Metric ESE MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 24.56% 9.26%
EPS growth (last fiscal year) 193.15% 55.52% 13.24%
Revenue growth, 5-year CAGR 8.44% 11.03% 7.89%
Net income growth, 5-year CAGR 24.66% (3.36%) 0.00%

Health

Metric ESE MKSI Scientific & Technical Instruments median
Debt to equity 0.05 1.15 0.00
Current ratio 1.38 1.19 2.30
Net debt to EBITDA 0.34 3.93 0.45

Dividend

Metric ESE MKSI Scientific & Technical Instruments median
Dividend yield 0.14% 0.51% 0.62%
Payout ratio 0.03 0.12 0.22

Size

Metric ESE MKSI Scientific & Technical Instruments median
Market cap 7.00b 11.96b 549.07m

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