Garmin Ltd. (GRMN) vs Trimble Inc. (TRMB)

Garmin Ltd. and Trimble Inc. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $57.3B against $13.5B — 4.2× the size. Trimble Inc. has negative trailing earnings, so its P/E is not meaningful; Garmin Ltd. trades at 30.2×. Garmin Ltd. grew revenue faster over the last twelve months: 13.5% against 5.80%. Garmin Ltd. has the higher net margin (24.5% vs −2.77%) and the higher return on invested capital (20.8% vs 6.32%). Across the 21 metrics below, Garmin Ltd. leads on 14 and Trimble Inc. on 7.

Valuation

Metric GRMN TRMB Scientific & Technical Instruments median
P/E 30.17 n/m 35.93
P/S 7.39 3.56 4.46
P/B 6.28 2.64 3.00
Price to free cash flow 35.54 17.62 24.96
EV/EBITDA 23.39 17.43 19.60
EV/Sales 7.05 3.89 4.98
Earnings yield 3.31% (0.81%) 0.53%
Free cash flow yield 2.81% 5.68% 1.12%

Profitability

Metric GRMN TRMB Scientific & Technical Instruments median
Gross margin 60.08% 69.80% 45.75%
Operating margin 27.61% 16.99% 7.34%
Net margin 24.47% (2.77%) 1.56%
Free cash flow margin 20.85% 20.44% 5.84%
Return on equity 21.89% (1.94%) 2.87%
Return on assets 17.26% (1.19%) 0.99%
Return on invested capital 20.81% 6.32% 3.88%

Growth

Metric GRMN TRMB Scientific & Technical Instruments median
Revenue growth (TTM) 13.51% 5.80% 11.28%
EPS growth (last fiscal year) 17.67% (71.10%) —
Revenue growth, 5-year CAGR 11.59% 2.65% 7.89%
Net income growth, 5-year CAGR 10.89% 1.69% 0.00%

Health

Metric GRMN TRMB Scientific & Technical Instruments median
Debt to equity 0.00 0.29 0.00
Current ratio 3.03 0.95 2.24
Net debt to EBITDA (1.33) 1.44 0.44

Dividend

Metric GRMN TRMB Scientific & Technical Instruments median
Dividend yield 2.42% — 0.72%
Payout ratio 0.56 0.00 0.00

Size

Metric GRMN TRMB Scientific & Technical Instruments median
Market cap 57.28b 13.51b 483.67m

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