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 $12.5B against $7.0B — 1.8× the size. Trimble Inc. has negative trailing earnings, so its P/E is not meaningful; ESCO Technologies Inc. trades at 19.0×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 6.88%. ESCO Technologies Inc. has the higher net margin (24.4% vs −4.08%) and the higher return on invested capital (7.76% vs 6.30%). 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 18.99 n/m 28.21
P/S 4.63 3.27 4.46
P/B 3.69 2.53 3.10
Price to free cash flow 30.38 15.91 24.15
EV/EBITDA 19.38 16.61 18.28
EV/Sales 4.64 3.61 4.64
Earnings yield 5.27% (1.27%) 0.68%
Free cash flow yield 3.29% 6.28% 1.98%

Profitability

Metric ESE TRMB Scientific & Technical Instruments median
Gross margin 42.01% 69.60% 47.24%
Operating margin 15.66% 16.48% 8.96%
Net margin 24.39% (4.08%) 1.92%
Free cash flow margin 15.23% 20.74% 10.59%
Return on equity 21.39% (2.92%) 2.66%
Return on assets 12.73% (1.79%) 1.12%
Return on invested capital 7.76% 6.30% 4.79%

Growth

Metric ESE TRMB Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 6.88% 9.26%
EPS growth (last fiscal year) 193.15% (71.10%) 13.24%
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 0.31 0.00
Current ratio 1.38 0.93 2.30
Net debt to EBITDA 0.34 1.44 0.45

Dividend

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

Size

Metric ESE TRMB Scientific & Technical Instruments median
Market cap 7.00b 12.51b 549.07m

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