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 $14.2B against $7.8B — 1.8× the size. Trimble Inc. has negative trailing earnings, so its P/E is not meaningful; ESCO Technologies Inc. trades at 20.5×. 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 20.52 n/m 33.25
P/S 5.00 3.66 4.50
P/B 3.99 2.71 2.90
Price to free cash flow 32.83 18.12 24.81
EV/EBITDA 20.94 17.88 17.92
EV/Sales 5.01 3.99 4.71
Earnings yield 4.87% (0.79%) 0.60%
Free cash flow yield 3.05% 5.52% 1.27%

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% 11.15%
EPS growth (last fiscal year) 193.15% (71.10%) 11.47%
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 0.13% — 0.58%
Payout ratio 0.03 — 0.36

Size

Metric ESE TRMB Scientific & Technical Instruments median
Market cap 7.83b 14.22b 444.25m

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