ESE vs. LECO, ITT, DCI, RBC, CR, MIDD, GTLS, MLI, WTS, and FLS
Should you be buying ESCO Technologies stock or one of its competitors? The main competitors of ESCO Technologies include Lincoln Electric (LECO), ITT (ITT), Donaldson (DCI), RBC Bearings (RBC), Crane (CR), Middleby (MIDD), Chart Industries (GTLS), Mueller Industries (MLI), Watts Water Technologies (WTS), and Flowserve (FLS). These companies are all part of the "industrial machinery" industry.
Lincoln Electric (NASDAQ:LECO) and ESCO Technologies (NYSE:ESE) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their community ranking, profitability, analyst recommendations, media sentiment, earnings, institutional ownership, dividends, valuation and risk.
Lincoln Electric presently has a consensus price target of $225.29, suggesting a potential upside of 14.73%. ESCO Technologies has a consensus price target of $120.00, suggesting a potential upside of 9.96%. Given ESCO Technologies' higher probable upside, analysts plainly believe Lincoln Electric is more favorable than ESCO Technologies.
Lincoln Electric pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. ESCO Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Lincoln Electric pays out 30.1% of its earnings in the form of a dividend. ESCO Technologies pays out 8.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lincoln Electric has raised its dividend for 29 consecutive years. Lincoln Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Lincoln Electric has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, ESCO Technologies has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
79.6% of Lincoln Electric shares are owned by institutional investors. Comparatively, 95.7% of ESCO Technologies shares are owned by institutional investors. 2.6% of Lincoln Electric shares are owned by insiders. Comparatively, 0.8% of ESCO Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Lincoln Electric received 34 more outperform votes than ESCO Technologies when rated by MarketBeat users. Likewise, 59.68% of users gave Lincoln Electric an outperform vote while only 58.56% of users gave ESCO Technologies an outperform vote.
Lincoln Electric has a net margin of 13.23% compared to Lincoln Electric's net margin of 9.94%. ESCO Technologies' return on equity of 43.81% beat Lincoln Electric's return on equity.
In the previous week, Lincoln Electric had 8 more articles in the media than ESCO Technologies. MarketBeat recorded 10 mentions for Lincoln Electric and 2 mentions for ESCO Technologies. Lincoln Electric's average media sentiment score of 0.46 beat ESCO Technologies' score of 0.17 indicating that ESCO Technologies is being referred to more favorably in the news media.
Lincoln Electric has higher revenue and earnings than ESCO Technologies. Lincoln Electric is trading at a lower price-to-earnings ratio than ESCO Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Lincoln Electric beats ESCO Technologies on 15 of the 21 factors compared between the two stocks.
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