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 $14.5B against $9.2B — 1.6× the size. Toro Company (The) trades at the lower P/E: 25.9× against 26.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against 5.15%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 7.64%) and the higher return on invested capital (19.5% vs 14.4%). Both pay a dividend; Toro Company (The) yields more (1.44% vs 1.12%). Across the 23 metrics below, Toro Company (The) leads on 12 and Lincoln Electric Holdings, Inc. on 11.

Valuation

Metric LECO TTC Tools & Accessories median
P/E 26.90 25.91 25.91
P/S 3.31 1.95 1.36
P/B 9.56 6.92 1.98
Price to free cash flow 27.22 12.76 18.96
EV/EBITDA 18.30 15.81 13.02
EV/Sales 3.55 2.11 1.27
Earnings yield 3.72% 3.86% 3.72%
Free cash flow yield 3.67% 7.84% 4.42%

Profitability

Metric LECO TTC Tools & Accessories median
Gross margin 35.96% 33.41% 33.41%
Operating margin 17.13% 10.31% 10.31%
Net margin 12.35% 7.64% 5.43%
Free cash flow margin 12.18% 15.25% 8.16%
Return on equity 37.74% 26.45% 7.80%
Return on assets 14.68% 10.30% 3.79%
Return on invested capital 19.49% 14.42% 6.23%

Growth

Metric LECO TTC Tools & Accessories median
Revenue growth (TTM) 9.32% 5.15% 5.45%
EPS growth (last fiscal year) 14.36% (20.95%) —
Revenue growth, 5-year CAGR 9.78% 5.95% 5.45%
Net income growth, 5-year CAGR 20.36% (0.84%) 0.27%

Health

Metric LECO TTC Tools & Accessories median
Debt to equity 0.74 0.72 0.44
Current ratio 1.98 1.58 2.62
Net debt to EBITDA 1.21 1.05 1.21

Dividend

Metric LECO TTC Tools & Accessories median
Dividend yield 1.12% 1.44% 2.20%
Payout ratio 0.30 0.37 0.35

Size

Metric LECO TTC Tools & Accessories median
Market cap 14.52b 9.17b 8.25b

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