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 $18.9B against $14.7B — 1.3× the size. Snap-On Incorporated trades at the lower P/E: 18.8× against 26.2×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against 3.14%. Snap-On Incorporated has the higher net margin (20.8% vs 12.4%) and the lower return on invested capital (15.4% vs 20.7%). Both pay a dividend; Snap-On Incorporated yields more (2.66% vs 1.15%). 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 26.18 18.78 24.49
P/S 3.23 3.90 1.29
P/B 9.64 3.09 2.01
Price to free cash flow 28.91 17.21 15.80
EV/EBITDA 17.67 12.85 12.85
EV/Sales 3.45 3.73 1.67
Earnings yield 3.82% 5.33% 3.95%
Free cash flow yield 3.46% 5.81% 5.81%

Profitability

Metric LECO SNA Tools & Accessories median
Gross margin 35.49% 50.49% 34.62%
Operating margin 17.29% 26.99% 10.65%
Net margin 12.40% 20.82% 6.76%
Free cash flow margin 11.17% 22.64% 9.25%
Return on equity 38.75% 16.91% 9.44%
Return on assets 14.93% 11.89% 4.19%
Return on invested capital 20.71% 15.35% 7.05%

Growth

Metric LECO SNA Tools & Accessories median
Revenue growth (TTM) 11.13% 3.14% 6.05%
EPS growth (last fiscal year) 14.36% (1.64%) 35.90%
Revenue growth, 5-year CAGR 9.78% 5.71% 5.26%
Net income growth, 5-year CAGR 20.36% 10.15% 2.99%

Health

Metric LECO SNA Tools & Accessories median
Debt to equity 0.74 0.15 0.53
Current ratio 1.91 3.55 2.56
Net debt to EBITDA 1.21 (0.31) 1.21

Dividend

Metric LECO SNA Tools & Accessories median
Dividend yield 1.15% 2.66% 1.58%
Payout ratio 0.30 0.51 0.34

Size

Metric LECO SNA Tools & Accessories median
Market cap 14.74b 18.90b 6.93b

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