ESCO Technologies Inc. (ESE) vs Vontier Corporation (VNT)

ESCO Technologies Inc. and Vontier Corporation are both Scientific & Technical Instruments companies. ESCO Technologies Inc. is the larger, with a market value of $7.8B against $4.5B — 1.7× the size. Vontier Corporation trades at the lower P/E: 13.7× against 20.5×. ESCO Technologies Inc. grew revenue faster over the last twelve months: 34.3% against 0.88%. ESCO Technologies Inc. has the higher net margin (24.4% vs 11.3%) and the lower return on invested capital (7.76% vs 14.3%). Both pay a dividend; Vontier Corporation yields more (0.30% vs 0.13%). Across the 23 metrics below, Vontier Corporation leads on 13 and ESCO Technologies Inc. on 10.

Valuation

Metric ESE VNT Scientific & Technical Instruments median
P/E 20.52 13.72 33.25
P/S 5.00 1.52 4.50
P/B 3.99 3.88 2.90
Price to free cash flow 32.83 12.09 24.81
EV/EBITDA 20.94 8.60 17.92
EV/Sales 5.01 1.95 4.71
Earnings yield 4.87% 7.29% 0.60%
Free cash flow yield 3.05% 8.27% 1.27%

Profitability

Metric ESE VNT Scientific & Technical Instruments median
Gross margin 42.01% 47.18% 45.75%
Operating margin 15.66% 18.79% 7.34%
Net margin 24.39% 11.34% 1.56%
Free cash flow margin 15.23% 12.55% 5.84%
Return on equity 21.39% 28.90% 2.87%
Return on assets 12.73% 8.28% 0.99%
Return on invested capital 7.76% 14.25% 3.88%

Growth

Metric ESE VNT Scientific & Technical Instruments median
Revenue growth (TTM) 34.33% 0.88% 11.15%
EPS growth (last fiscal year) 193.15% 0.36% 11.47%
Revenue growth, 5-year CAGR 8.44% 2.60% 7.89%
Net income growth, 5-year CAGR 24.66% 3.50% 0.00%

Health

Metric ESE VNT Scientific & Technical Instruments median
Debt to equity 0.05 1.33 0.00
Current ratio 1.38 1.25 2.24
Net debt to EBITDA 0.34 1.60 0.44

Dividend

Metric ESE VNT Scientific & Technical Instruments median
Dividend yield 0.13% 0.30% 0.58%
Payout ratio 0.03 0.04 0.36

Size

Metric ESE VNT Scientific & Technical Instruments median
Market cap 7.83b 4.50b 444.25m

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