ESCO Technologies Inc. (ESE) vs Trimble Inc. (TRMB)

ESCO Technologies Inc. and Trimble Inc. are both Scientific & Technical Instruments companies. Trimble Inc. is the larger, with a market value of $13.5B against $7.0B — 1.9× the size. Trimble Inc. has negative trailing earnings, so its P/E is not meaningful; ESCO Technologies Inc. trades at 22.1×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 5.80%. ESCO Technologies Inc. has the higher net margin (24.4% vs −2.77%) and the higher return on invested capital (7.76% vs 6.32%). Across the 21 metrics below, ESCO Technologies Inc. leads on 12 and Trimble Inc. on 9.

Valuation

Metric ESE TRMB Scientific & Technical Instruments median
P/E 22.09 n/m 35.93
P/S 5.38 3.56 4.46
P/B 4.30 2.64 3.00
Price to free cash flow 35.35 17.62 24.96
EV/EBITDA 22.54 17.43 19.60
EV/Sales 5.39 3.89 4.98
Earnings yield 4.53% (0.81%) 0.53%
Free cash flow yield 2.83% 5.68% 1.12%

Profitability

Metric ESE TRMB Scientific & Technical Instruments median
Gross margin 42.01% 69.80% 45.75%
Operating margin 15.66% 16.99% 7.34%
Net margin 24.39% (2.77%) 1.56%
Free cash flow margin 15.23% 20.44% 5.84%
Return on equity 21.39% (1.94%) 2.87%
Return on assets 12.73% (1.19%) 0.99%
Return on invested capital 7.76% 6.32% 3.88%

Growth

Metric ESE TRMB Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 5.80% 11.28%
EPS growth (last fiscal year) 193.15% (71.10%) —
Revenue growth, 5-year CAGR 8.44% 2.65% 7.89%
Net income growth, 5-year CAGR 24.66% 1.69% 0.00%

Health

Metric ESE TRMB Scientific & Technical Instruments median
Debt to equity 0.05 0.29 0.00
Current ratio 1.38 0.95 2.24
Net debt to EBITDA 0.34 1.44 0.44

Dividend

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

Size

Metric ESE TRMB Scientific & Technical Instruments median
Market cap 6.95b 13.51b 483.67m

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