Comparing ESCO Technologies (ESE) and Lumentum (LITE)

ESCO Technologies (NYSE: ESE) and Lumentum (NASDAQ:LITE) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

How to Become a New Pot Stock Millionaire

This table compares ESCO Technologies and Lumentum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESCO Technologies $685.74 million 2.14 $53.70 million N/A N/A
Lumentum $1.00 billion 3.63 -$102.50 million $1.59 37.20

ESCO Technologies has higher earnings, but lower revenue than Lumentum.

Profitability

This table compares ESCO Technologies and Lumentum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESCO Technologies 10.89% 8.20% 4.54%
Lumentum 8.97% 24.06% 11.92%

Insider & Institutional Ownership

95.5% of ESCO Technologies shares are held by institutional investors. 2.6% of ESCO Technologies shares are held by insiders. Comparatively, 0.8% of Lumentum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

ESCO Technologies has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Lumentum has a beta of -0.08, indicating that its stock price is 108% 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 0.6%. Lumentum does not pay a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for ESCO Technologies and Lumentum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESCO Technologies 0 1 4 0 2.80
Lumentum 0 1 14 0 2.93

ESCO Technologies presently has a consensus price target of $69.00, suggesting a potential upside of 21.27%. Lumentum has a consensus price target of $82.14, suggesting a potential upside of 38.87%. Given Lumentum’s stronger consensus rating and higher possible upside, analysts plainly believe Lumentum is more favorable than ESCO Technologies.

Summary

Lumentum beats ESCO Technologies on 8 of the 14 factors compared between the two stocks.

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.

About Lumentum

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates through two segments, Optical Communications and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; and transport products comprising reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components consisting of 980nm, multi-mode, and Raman pumps. This segment also offers Super Transport Blade, which integrates optical transport functions into a single-slot blade; products for 3-D sensing applications, including a light source product; vertical-cavity surface-emitting lasers; distributed feedback and electro-absorption modulated lasers; and individual and compact laser arrays. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, diode, direct-diode, fiber, and gas lasers. This segment serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, and remote sensing, as well as in precision machining, including drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Its lasers products are used in various original equipment manufacturer applications. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in Milpitas, California.

Receive News & Ratings for ESCO Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ESCO Technologies and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply