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 $17.7B against $7.0B — 2.5× the size. ESCO Technologies Inc. trades at the lower P/E: 22.1× against 39.9×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 16.3%. ESCO Technologies Inc. has the higher net margin (24.4% vs 10.1%) and the higher return on invested capital (7.76% vs 6.74%). Both pay a dividend; MKS Inc. yields more (0.77% vs 0.31%). Across the 23 metrics below, ESCO Technologies Inc. leads on 16 and MKS Inc. on 7.

Valuation

Metric ESE MKSI Scientific & Technical Instruments median
P/E 22.09 39.94 35.93
P/S 5.38 4.06 4.46
P/B 4.30 5.90 3.00
Price to free cash flow 35.35 38.50 24.96
EV/EBITDA 22.54 20.04 19.60
EV/Sales 5.39 4.82 4.98
Earnings yield 4.53% 2.50% 0.53%
Free cash flow yield 2.83% 2.60% 1.12%

Profitability

Metric ESE MKSI Scientific & Technical Instruments median
Gross margin 42.01% 46.96% 45.75%
Operating margin 15.66% 15.69% 7.34%
Net margin 24.39% 10.12% 1.56%
Free cash flow margin 15.23% 10.53% 5.84%
Return on equity 21.39% 15.88% 2.87%
Return on assets 12.73% 4.95% 0.99%
Return on invested capital 7.76% 6.74% 3.88%

Growth

Metric ESE MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 16.26% 11.28%
EPS growth (last fiscal year) 193.15% 55.52% —
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 1.32 0.00
Current ratio 1.38 1.14 2.24
Net debt to EBITDA 0.34 3.93 0.44

Dividend

Metric ESE MKSI Scientific & Technical Instruments median
Dividend yield 0.31% 0.77% 0.72%
Payout ratio 0.09 0.12 0.00

Size

Metric ESE MKSI Scientific & Technical Instruments median
Market cap 6.95b 17.71b 483.67m

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