Lincoln Electric Holdings, Inc. (LECO) vs Snap-On Incorporated (SNA)

Lincoln Electric Holdings, Inc. and Snap-On Incorporated are both Tools & Accessories companies. Snap-On Incorporated is the larger, with a market value of $19.0B against $14.5B — 1.3× the size. Snap-On Incorporated trades at the lower P/E: 18.5× against 26.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against 4.26%. Snap-On Incorporated has the higher net margin (21.3% vs 12.4%) and the lower return on invested capital (15.8% vs 19.5%). Both pay a dividend; Snap-On Incorporated yields more (2.59% vs 1.12%). Across the 23 metrics below, Snap-On Incorporated leads on 14 and Lincoln Electric Holdings, Inc. on 9.

Valuation

Metric LECO SNA Tools & Accessories median
P/E 26.90 18.54 25.91
P/S 3.31 3.92 1.36
P/B 9.56 3.15 1.98
Price to free cash flow 27.22 16.91 18.96
EV/EBITDA 18.30 12.71 13.02
EV/Sales 3.55 3.77 1.27
Earnings yield 3.72% 5.39% 3.72%
Free cash flow yield 3.67% 5.92% 4.42%

Profitability

Metric LECO SNA Tools & Accessories median
Gross margin 35.96% 50.46% 33.41%
Operating margin 17.13% 27.59% 10.31%
Net margin 12.35% 21.25% 5.43%
Free cash flow margin 12.18% 23.21% 8.16%
Return on equity 37.74% 17.51% 7.80%
Return on assets 14.68% 12.27% 3.79%
Return on invested capital 19.49% 15.80% 6.23%

Growth

Metric LECO SNA Tools & Accessories median
Revenue growth (TTM) 9.32% 4.26% 5.45%
EPS growth (last fiscal year) 14.36% (1.64%) —
Revenue growth, 5-year CAGR 9.78% 5.71% 5.45%
Net income growth, 5-year CAGR 20.36% 10.15% 0.27%

Health

Metric LECO SNA Tools & Accessories median
Debt to equity 0.74 0.15 0.44
Current ratio 1.98 3.43 2.62
Net debt to EBITDA 1.21 (0.31) 1.21

Dividend

Metric LECO SNA Tools & Accessories median
Dividend yield 1.12% 2.59% 2.20%
Payout ratio 0.30 0.35 0.35

Size

Metric LECO SNA Tools & Accessories median
Market cap 14.52b 19.02b 8.25b

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