AVAV vs. LECO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV and LECO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AVAV’s market capitalization stands at 11.24 billion USD, while LECO’s is 12.07 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.81 for AVAV and 1.21 for LECO, both stocks show similar sensitivity to overall market movements.
| Symbol | AVAV | LECO |
|---|---|---|
| Company Name | AeroVironment, Inc. | Lincoln Electric Holdings, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Manufacturing - Tools & Accessories |
| CEO | Wahid Nawabi | Steven B. Hedlund |
| Price | 246.23 USD | 216.28 USD |
| Market Cap | 11.24 billion USD | 12.07 billion USD |
| Beta | 0.81 | 1.21 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 23, 2007 | April 7, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV and LECO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
LECO
34.68%
Manufacturing - Tools & Accessories Industry
- Max
- 34.68%
- Q3
- 20.63%
- Median
- 10.07%
- Q1
- 7.35%
- Min
- 1.56%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Equity of 34.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
LECO
18.96%
Manufacturing - Tools & Accessories Industry
- Max
- 18.96%
- Q3
- 14.59%
- Median
- 7.53%
- Q1
- 6.50%
- Min
- 2.74%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Invested Capital of 18.96% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
LECO
11.44%
Manufacturing - Tools & Accessories Industry
- Max
- 21.42%
- Q3
- 12.34%
- Median
- 8.01%
- Q1
- 4.68%
- Min
- 1.24%
LECO’s Net Profit Margin of 11.44% is aligned with the median group of its peers in the Manufacturing - Tools & Accessories industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
LECO
16.61%
Manufacturing - Tools & Accessories Industry
- Max
- 27.46%
- Q3
- 18.11%
- Median
- 11.96%
- Q1
- 8.53%
- Min
- 6.01%
LECO’s Operating Profit Margin of 16.61% is around the midpoint for the Manufacturing - Tools & Accessories industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVAV | LECO |
|---|---|---|
| Return on Equity (TTM) | 5.06% | 34.68% |
| Return on Assets (TTM) | 3.89% | 12.72% |
| Return on Invested Capital (TTM) | 4.16% | 18.96% |
| Net Profit Margin (TTM) | 5.54% | 11.44% |
| Operating Profit Margin (TTM) | 5.18% | 16.61% |
| Gross Profit Margin (TTM) | 40.23% | 36.45% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
LECO
1.78
Manufacturing - Tools & Accessories Industry
- Max
- 4.14
- Q3
- 3.17
- Median
- 2.45
- Q1
- 1.81
- Min
- 1.10
LECO’s Current Ratio of 1.78 falls into the lower quartile for the Manufacturing - Tools & Accessories industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AVAV
0.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
LECO
0.94
Manufacturing - Tools & Accessories Industry
- Max
- 0.94
- Q3
- 0.78
- Median
- 0.72
- Q1
- 0.31
- Min
- 0.05
LECO’s leverage is in the upper quartile of the Manufacturing - Tools & Accessories industry, with a Debt-to-Equity Ratio of 0.94. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
LECO
14.51
Manufacturing - Tools & Accessories Industry
- Max
- 14.51
- Q3
- 10.02
- Median
- 6.60
- Q1
- 5.24
- Min
- 1.53
LECO’s Interest Coverage Ratio of 14.51 is in the upper quartile for the Manufacturing - Tools & Accessories industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVAV | LECO |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 1.78 |
| Quick Ratio (TTM) | 2.69 | 1.19 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.94 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.35 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 1.17 |
| Interest Coverage Ratio (TTM) | 245.75 | 14.51 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV and LECO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
LECO
1.37%
Manufacturing - Tools & Accessories Industry
- Max
- 4.85%
- Q3
- 2.87%
- Median
- 2.00%
- Q1
- 1.05%
- Min
- 0.00%
LECO’s Dividend Yield of 1.37% is consistent with its peers in the Manufacturing - Tools & Accessories industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
LECO
35.53%
Manufacturing - Tools & Accessories Industry
- Max
- 138.27%
- Q3
- 47.32%
- Median
- 36.66%
- Q1
- 23.90%
- Min
- 0.00%
LECO’s Dividend Payout Ratio of 35.53% is within the typical range for the Manufacturing - Tools & Accessories industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVAV | LECO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.37% |
| Dividend Payout Ratio (TTM) | 0.00% | 35.53% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
LECO
26.41
Manufacturing - Tools & Accessories Industry
- Max
- 48.52
- Q3
- 33.58
- Median
- 21.58
- Q1
- 16.21
- Min
- 15.65
LECO’s P/E Ratio of 26.41 is within the middle range for the Manufacturing - Tools & Accessories industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
LECO
4.33
Manufacturing - Tools & Accessories Industry
- Max
- 5.86
- Q3
- 4.35
- Median
- 3.53
- Q1
- 1.63
- Min
- 0.87
LECO’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Manufacturing - Tools & Accessories industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
LECO
3.00
Manufacturing - Tools & Accessories Industry
- Max
- 3.41
- Q3
- 3.03
- Median
- 1.33
- Q1
- 0.93
- Min
- 0.69
LECO’s P/S Ratio of 3.00 aligns with the market consensus for the Manufacturing - Tools & Accessories industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
LECO
9.09
Manufacturing - Tools & Accessories Industry
- Max
- 4.75
- Q3
- 4.14
- Median
- 2.35
- Q1
- 1.37
- Min
- 1.16
At 9.09, LECO’s P/B Ratio is at an extreme premium to the Manufacturing - Tools & Accessories industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AVAV | LECO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 26.41 |
| Forward PEG Ratio (TTM) | 4.65 | 4.33 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 3.00 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 9.09 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 22.61 |
| EV-to-EBITDA (TTM) | 188.22 | 17.50 |
| EV-to-Sales (TTM) | 14.26 | 3.21 |