Hillman Solutions Corp. (HLMN) vs Lincoln Electric Holdings, Inc. (LECO)

Hillman Solutions Corp. and Lincoln Electric Holdings, Inc. are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. is the larger, with a market value of $14.7B against $1.7B — 8.9× the size. Lincoln Electric Holdings, Inc. trades at the lower P/E: 25.9× against 64.6×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against 6.40%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 1.48%) and the higher return on invested capital (20.7% vs 2.98%). Across the 22 metrics below, Lincoln Electric Holdings, Inc. leads on 13 and Hillman Solutions Corp. on 9.

Valuation

Metric HLMN LECO Tools & Accessories median
P/E 64.63 25.89 23.82
P/S 1.02 3.19 1.27
P/B 1.35 9.54 3.60
Price to free cash flow 16.16 28.59 15.76
EV/EBITDA 10.18 17.49 12.84
EV/Sales 1.58 3.42 1.66
Earnings yield 1.55% 3.86% 4.03%
Free cash flow yield 6.19% 3.50% 5.82%

Profitability

Metric HLMN LECO Tools & Accessories median
Gross margin 47.87% 35.49% 34.62%
Operating margin 6.29% 17.29% 10.65%
Net margin 1.48% 12.40% 6.76%
Free cash flow margin 6.31% 11.17% 9.30%
Return on equity 1.97% 38.75% 10.51%
Return on assets 0.96% 14.93% 4.19%
Return on invested capital 2.98% 20.71% 7.05%

Growth

Metric HLMN LECO Tools & Accessories median
Revenue growth (TTM) 6.40% 11.13% 6.18%
EPS growth (last fiscal year) 122.22% 14.36% 35.90%
Revenue growth, 5-year CAGR 2.55% 9.78% 5.26%
Net income growth, 5-year CAGR 0.00% 20.36% 2.99%

Health

Metric HLMN LECO Tools & Accessories median
Debt to equity 0.78 0.74 0.53
Current ratio 2.60 1.91 2.60
Net debt to EBITDA 2.52 1.21 1.21

Dividend

Metric HLMN LECO Tools & Accessories median
Dividend yield — 1.16% 1.55%
Payout ratio — 0.30 0.34

Size

Metric HLMN LECO Tools & Accessories median
Market cap 1.66b 14.74b 7.39b

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