Lincoln Electric Holdings, Inc. (LECO) vs RBC Bearings Incorporated (RBC)

Lincoln Electric Holdings, Inc. and RBC Bearings Incorporated are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. and RBC Bearings Incorporated are of similar size ($16.0B and $14.5B). Lincoln Electric Holdings, Inc. trades at the lower P/E: 26.9× against 49.8×. RBC Bearings Incorporated grew revenue faster over the last twelve months: 17.3% against 9.32%. RBC Bearings Incorporated has the higher net margin (16.4% vs 12.4%) and the lower return on invested capital (6.95% vs 19.5%). Across the 22 metrics below, Lincoln Electric Holdings, Inc. leads on 11 and RBC Bearings Incorporated on 11.

Valuation

Metric LECO RBC Tools & Accessories median
P/E 26.90 49.76 25.91
P/S 3.31 8.17 1.36
P/B 9.56 4.61 1.98
Price to free cash flow 27.22 41.47 18.96
EV/EBITDA 18.30 27.93 13.02
EV/Sales 3.55 8.52 1.27
Earnings yield 3.72% 2.01% 3.72%
Free cash flow yield 3.67% 2.41% 4.42%

Profitability

Metric LECO RBC Tools & Accessories median
Gross margin 35.96% 45.17% 33.41%
Operating margin 17.13% 23.57% 10.31%
Net margin 12.35% 16.40% 5.43%
Free cash flow margin 12.18% 19.71% 8.16%
Return on equity 37.74% 9.75% 7.80%
Return on assets 14.68% 6.42% 3.79%
Return on invested capital 19.49% 6.95% 6.23%

Growth

Metric LECO RBC Tools & Accessories median
Revenue growth (TTM) 9.32% 17.31% 5.45%
EPS growth (last fiscal year) 14.36% 18.05% —
Revenue growth, 5-year CAGR 9.78% 25.17% 5.45%
Net income growth, 5-year CAGR 20.36% 26.13% 0.27%

Health

Metric LECO RBC Tools & Accessories median
Debt to equity 0.74 0.23 0.44
Current ratio 1.98 2.53 2.62
Net debt to EBITDA 1.21 1.48 1.21

Dividend

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

Size

Metric LECO RBC Tools & Accessories median
Market cap 14.52b 15.95b 8.25b

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