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

Lincoln Electric Holdings, Inc. and RBC Bearings Incorporated are both Tools & Accessories companies. RBC Bearings Incorporated is the larger, with a market value of $15.8B against $14.2B — 1.1× the size. Lincoln Electric Holdings, Inc. trades at the lower P/E: 26.0× against 49.0×. 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 25.95 49.02 25.95
P/S 3.20 8.05 1.32
P/B 9.22 4.54 1.93
Price to free cash flow 26.26 40.84 18.46
EV/EBITDA 17.70 27.53 12.84
EV/Sales 3.44 8.40 1.31
Earnings yield 3.85% 2.04% 3.73%
Free cash flow yield 3.81% 2.45% 4.23%

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% 35.90%
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 1.21% — 1.68%
Payout ratio 0.32 — 0.38

Size

Metric LECO RBC Tools & Accessories median
Market cap 14.18b 15.76b 7.83b

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