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 ($14.7B and $14.7B). Lincoln Electric Holdings, Inc. trades at the lower P/E: 25.9× against 41.3×. RBC Bearings Incorporated grew revenue faster over the last twelve months: 17.4% against 11.1%. RBC Bearings Incorporated has the higher net margin (17.5% vs 12.4%) and the lower return on invested capital (7.39% vs 20.7%). 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 25.89 41.29 23.82
P/S 3.19 7.25 1.27
P/B 9.54 4.12 3.60
Price to free cash flow 28.59 36.73 15.76
EV/EBITDA 17.49 24.21 12.84
EV/Sales 3.42 7.55 1.66
Earnings yield 3.86% 2.42% 4.03%
Free cash flow yield 3.50% 2.72% 5.82%

Profitability

Metric LECO RBC Tools & Accessories median
Gross margin 35.49% 45.52% 34.62%
Operating margin 17.29% 24.44% 10.65%
Net margin 12.40% 17.51% 6.76%
Free cash flow margin 11.17% 19.73% 9.30%
Return on equity 38.75% 10.51% 10.51%
Return on assets 14.93% 6.88% 4.19%
Return on invested capital 20.71% 7.39% 7.05%

Growth

Metric LECO RBC Tools & Accessories median
Revenue growth (TTM) 11.13% 17.42% 6.18%
EPS growth (last fiscal year) 14.36% 18.05% 35.90%
Revenue growth, 5-year CAGR 9.78% 25.17% 5.26%
Net income growth, 5-year CAGR 20.36% 26.13% 2.99%

Health

Metric LECO RBC Tools & Accessories median
Debt to equity 0.74 0.20 0.53
Current ratio 1.91 3.13 2.60
Net debt to EBITDA 1.21 1.48 1.21

Dividend

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

Size

Metric LECO RBC Tools & Accessories median
Market cap 14.74b 14.72b 7.39b

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