ESCO Technologies (NYSE: ESE) is one of 29 publicly-traded companies in the “Testing & Measuring Equipment” industry, but how does it contrast to its competitors? We will compare ESCO Technologies to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares ESCO Technologies and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ESCO Technologies $638.24 million $108.39 million 31.11
ESCO Technologies Competitors $481.50 million $95.49 million -3.38

ESCO Technologies has higher revenue and earnings than its competitors. ESCO Technologies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for ESCO Technologies and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESCO Technologies 0 0 3 0 3.00
ESCO Technologies Competitors 48 391 498 9 2.49

ESCO Technologies currently has a consensus price target of $66.50, indicating a potential upside of 7.95%. As a group, “Testing & Measuring Equipment” companies have a potential downside of 19.45%. Given ESCO Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe ESCO Technologies is more favorable than its competitors.

Profitability

This table compares ESCO Technologies and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESCO Technologies 8.06% 8.36% 4.84%
ESCO Technologies Competitors -4.90% 2.01% -0.80%

Institutional and Insider Ownership

94.1% of ESCO Technologies shares are owned by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are owned by institutional investors. 2.3% of ESCO Technologies shares are owned by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

ESCO Technologies has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, ESCO Technologies’ competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Dividends

ESCO Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. ESCO Technologies pays out 16.2% of its earnings in the form of a dividend. As a group, “Testing & Measuring Equipment” companies pay a dividend yield of 0.6% and pay out 21.5% of their earnings in the form of a dividend.

Summary

ESCO Technologies beats its competitors on 12 of the 15 factors compared.

About ESCO Technologies

ESCO Technologies Inc. (ESCO) is a producer of engineered products and systems sold to customers for utility, industrial, aerospace and commercial applications. The Company operates through four segments: Filtration/Fluid Flow (Filtration), RF Shielding and Test (Test), Utility Solutions Group (USG) and Technical Packaging. The filtration segment’s activities are managed by its subsidiaries, Crissair, Inc. (Crissair), PTI Technologies Inc. (PTI), VACCO Industries (VACCO) and Westland Technologies Inc. (Westland). The Test segment activities are managed by its subsidiaries, Beijing Lindgren ElectronMagnetic Technology Co., Ltd., ETS-Lindgren Inc. and ETS-Lindgren OY. The USG segment activities are managed by its subsidiaries, including Doble Engineering Company, Doble PowerTest Ltd and Doble TransiNor AS. The technical packaging activities are managed by its subsidiaries, Thermoform Engineered Quality LLC (TEQ), Plastique Limited and Plastique Sp. z o.o.

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