LGL Group, Inc. (The) (LGL) vs Sono-Tek Corporation (SOTK)

LGL Group, Inc. (The) and Sono-Tek Corporation are both Scientific & Technical Instruments companies. LGL Group, Inc. (The) is the larger, with a market value of $85.8M against $75.0M — 1.1× the size. LGL Group, Inc. (The) has negative trailing earnings, so its P/E is not meaningful; Sono-Tek Corporation trades at 38.0×. LGL Group, Inc. (The) grew revenue faster over the last twelve months: 9.26% against 4.04%. Sono-Tek Corporation has the higher net margin (9.62% vs −5.04%) and the higher return on invested capital (35.4% vs −29.4%). Across the 18 metrics below, Sono-Tek Corporation leads on 11 and LGL Group, Inc. (The) on 7.

Valuation

Metric LGL SOTK Scientific & Technical Instruments median
P/E n/m 38.00 35.93
P/S 9.41 3.62 4.46
P/B 0.90 3.77 3.00
Price to free cash flow n/m 13.31 24.96
EV/EBITDA 2.60 21.88 19.60
EV/Sales (0.55) 2.93 4.98
Earnings yield (0.21%) 2.63% 0.53%
Free cash flow yield (1.48%) 7.51% 1.12%

Profitability

Metric LGL SOTK Scientific & Technical Instruments median
Gross margin 68.85% 51.82% 45.75%
Operating margin (21.75%) 10.44% 7.34%
Net margin (5.04%) 9.62% 1.56%
Free cash flow margin 0.61% 27.31% 5.84%
Return on equity (0.52%) 10.61% 2.87%
Return on assets (0.50%) 8.37% 0.99%
Return on invested capital (29.40%) 35.35% 3.88%

Growth

Metric LGL SOTK Scientific & Technical Instruments median
Revenue growth (TTM) 9.26% 4.04% 11.28%
EPS growth (last fiscal year) 37.50% 37.50% —
Revenue growth, 5-year CAGR (33.12%) 7.11% 7.89%
Net income growth, 5-year CAGR (6.60%) 10.01% 0.00%

Health

Metric LGL SOTK Scientific & Technical Instruments median
Debt to equity 0.00 0.00 0.00
Current ratio 25.96 4.37 2.24
Net debt to EBITDA (153.89) (5.94) 0.44

Dividend

Metric LGL SOTK Scientific & Technical Instruments median
Dividend yield — — 0.72%
Payout ratio 0.00 0.00 0.00

Size

Metric LGL SOTK Scientific & Technical Instruments median
Market cap 85.77m 74.97m 483.67m

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