Lincoln Electric Holdings, Inc. (LECO) vs Timken Company (The) (TKR)

Lincoln Electric Holdings, Inc. and Timken Company (The) are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. is the larger, with a market value of $14.7B against $6.9B — 2.1× the size. Timken Company (The) trades at the lower P/E: 23.8× against 25.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against 5.95%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 5.88%) and the higher return on invested capital (20.7% vs 6.76%). Both pay a dividend; Timken Company (The) yields more (1.43% vs 1.16%). Across the 23 metrics below, Lincoln Electric Holdings, Inc. leads on 13 and Timken Company (The) on 10.

Valuation

Metric LECO TKR Tools & Accessories median
P/E 25.89 23.82 23.82
P/S 3.19 1.43 1.27
P/B 9.54 40.07 3.60
Price to free cash flow 28.59 15.36 15.76
EV/EBITDA 17.49 10.97 12.84
EV/Sales 3.42 1.74 1.66
Earnings yield 3.86% 4.20% 4.03%
Free cash flow yield 3.50% 6.51% 5.82%

Profitability

Metric LECO TKR Tools & Accessories median
Gross margin 35.49% 31.26% 34.62%
Operating margin 17.29% 10.98% 10.65%
Net margin 12.40% 5.88% 6.76%
Free cash flow margin 11.17% 9.30% 9.30%
Return on equity 38.75% 16.33% 10.51%
Return on assets 14.93% 4.19% 4.19%
Return on invested capital 20.71% 6.76% 7.05%

Growth

Metric LECO TKR Tools & Accessories median
Revenue growth (TTM) 11.13% 5.95% 6.18%
EPS growth (last fiscal year) 14.36% (17.64%) 35.90%
Revenue growth, 5-year CAGR 9.78% 5.45% 5.26%
Net income growth, 5-year CAGR 20.36% 0.27% 2.99%

Health

Metric LECO TKR Tools & Accessories median
Debt to equity 0.74 0.57 0.53
Current ratio 1.91 2.56 2.60
Net debt to EBITDA 1.21 1.97 1.21

Dividend

Metric LECO TKR Tools & Accessories median
Dividend yield 1.16% 1.43% 1.55%
Payout ratio 0.30 0.34 0.34

Size

Metric LECO TKR Tools & Accessories median
Market cap 14.74b 6.93b 7.39b

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