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 $14.5B against $8.3B — 1.8× the size. Lincoln Electric Holdings, Inc. trades at the lower P/E: 26.9× against 31.6×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against 5.45%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 5.43%) and the higher return on invested capital (19.5% vs 6.23%). Both pay a dividend; Timken Company (The) yields more (1.69% vs 1.12%). Across the 23 metrics below, Lincoln Electric Holdings, Inc. leads on 14 and Timken Company (The) on 9.

Valuation

Metric LECO TKR Tools & Accessories median
P/E 26.90 31.57 25.91
P/S 3.31 1.71 1.36
P/B 9.56 2.43 1.98
Price to free cash flow 27.22 21.01 18.96
EV/EBITDA 18.30 13.32 13.02
EV/Sales 3.55 2.07 1.27
Earnings yield 3.72% 3.17% 3.72%
Free cash flow yield 3.67% 4.76% 4.42%

Profitability

Metric LECO TKR Tools & Accessories median
Gross margin 35.96% 30.83% 33.41%
Operating margin 17.13% 10.55% 10.31%
Net margin 12.35% 5.43% 5.43%
Free cash flow margin 12.18% 8.16% 8.16%
Return on equity 37.74% 7.80% 7.80%
Return on assets 14.68% 3.79% 3.79%
Return on invested capital 19.49% 6.23% 6.23%

Growth

Metric LECO TKR Tools & Accessories median
Revenue growth (TTM) 9.32% 5.45% 5.45%
EPS growth (last fiscal year) 14.36% (17.64%) —
Revenue growth, 5-year CAGR 9.78% 5.45% 5.45%
Net income growth, 5-year CAGR 20.36% 0.27% 0.27%

Health

Metric LECO TKR Tools & Accessories median
Debt to equity 0.74 0.62 0.44
Current ratio 1.98 3.10 2.62
Net debt to EBITDA 1.21 1.97 1.21

Dividend

Metric LECO TKR Tools & Accessories median
Dividend yield 1.12% 1.69% 2.20%
Payout ratio 0.30 0.21 0.35

Size

Metric LECO TKR Tools & Accessories median
Market cap 14.52b 8.25b 8.25b

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