Lincoln Electric Holdings, Inc. (LECO) vs Toro Company (The) (TTC)

Lincoln Electric Holdings, Inc. and Toro Company (The) are both Tools & Accessories companies. Lincoln Electric Holdings, Inc. is the larger, with a market value of $15.0B against $10.2B — 1.5× the size. Lincoln Electric Holdings, Inc. trades at the lower P/E: 27.2× against 29.1×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against 5.15%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 7.64%) and the higher return on invested capital (20.7% vs 14.4%). Both pay a dividend; Toro Company (The) yields more (1.43% vs 1.10%). Across the 23 metrics below, Lincoln Electric Holdings, Inc. leads on 13 and Toro Company (The) on 10.

Valuation

Metric LECO TTC Tools & Accessories median
P/E 27.23 29.09 27.23
P/S 3.36 2.19 1.35
P/B 10.03 7.77 2.07
Price to free cash flow 30.07 14.33 18.75
EV/EBITDA 18.34 17.60 12.96
EV/Sales 3.58 2.35 1.73
Earnings yield 3.67% 3.44% 3.56%
Free cash flow yield 3.33% 6.98% 3.70%

Profitability

Metric LECO TTC Tools & Accessories median
Gross margin 35.49% 33.41% 34.45%
Operating margin 17.29% 10.31% 10.43%
Net margin 12.40% 7.64% 6.54%
Free cash flow margin 11.17% 15.25% 8.16%
Return on equity 38.75% 26.45% 7.80%
Return on assets 14.93% 10.30% 3.79%
Return on invested capital 20.71% 14.42% 6.23%

Growth

Metric LECO TTC Tools & Accessories median
Revenue growth (TTM) 11.13% 5.15% 5.96%
EPS growth (last fiscal year) 14.36% (20.95%) 35.90%
Revenue growth, 5-year CAGR 9.78% 5.95% 5.26%
Net income growth, 5-year CAGR 20.36% (0.84%) 2.99%

Health

Metric LECO TTC Tools & Accessories median
Debt to equity 0.74 0.72 0.44
Current ratio 1.91 1.58 2.71
Net debt to EBITDA 1.21 1.05 1.21

Dividend

Metric LECO TTC Tools & Accessories median
Dividend yield 1.10% 1.43% 1.49%
Payout ratio 0.30 0.42 0.38

Size

Metric LECO TTC Tools & Accessories median
Market cap 15.00b 10.22b 7.69b

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