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 $14.5B against $1.4B — 10.4× the size. Lincoln Electric Holdings, Inc. trades at the lower P/E: 26.9× against 32.0×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against 6.47%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 2.57%) and the higher return on invested capital (19.5% vs 3.68%). Across the 22 metrics below, Lincoln Electric Holdings, Inc. leads on 12 and Hillman Solutions Corp. on 10.

Valuation

Metric HLMN LECO Tools & Accessories median
P/E 32.05 26.90 25.91
P/S 0.86 3.31 1.36
P/B 1.13 9.56 1.98
Price to free cash flow 22.61 27.22 18.96
EV/EBITDA 7.78 18.30 13.02
EV/Sales 1.27 3.55 1.27
Earnings yield 3.12% 3.72% 3.72%
Free cash flow yield 4.42% 3.67% 4.42%

Profitability

Metric HLMN LECO Tools & Accessories median
Gross margin 48.05% 35.96% 33.41%
Operating margin 6.91% 17.13% 10.31%
Net margin 2.57% 12.35% 5.43%
Free cash flow margin 3.81% 12.18% 8.16%
Return on equity 3.39% 37.74% 7.80%
Return on assets 1.74% 14.68% 3.79%
Return on invested capital 3.68% 19.49% 6.23%

Growth

Metric HLMN LECO Tools & Accessories median
Revenue growth (TTM) 6.47% 9.32% 5.45%
EPS growth (last fiscal year) 122.22% 14.36% —
Revenue growth, 5-year CAGR 2.55% 9.78% 5.45%
Net income growth, 5-year CAGR 0.00% 20.36% 0.27%

Health

Metric HLMN LECO Tools & Accessories median
Debt to equity 0.57 0.74 0.44
Current ratio 2.71 1.98 2.62
Net debt to EBITDA 2.52 1.21 1.21

Dividend

Metric HLMN LECO Tools & Accessories median
Dividend yield — 1.12% 2.20%
Payout ratio 0.00 0.30 0.35

Size

Metric HLMN LECO Tools & Accessories median
Market cap 1.39b 14.52b 8.25b

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