Seek Returns logo

ESE vs. KEYS: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ESE and KEYS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolESEKEYS
Company NameESCO Technologies Inc.Keysight Technologies, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsInformation Technology
GICS IndustryMachineryElectronic Equipment, Instruments & Components
Market Capitalization5.50 billion USD29.79 billion USD
ExchangeNYSENYSE
Listing DateOctober 1, 1990October 20, 2014
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ESE and KEYS 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.

ESE vs. KEYS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolESEKEYS
5-Day Price Return-0.37%0.45%
13-Week Price Return10.03%5.25%
26-Week Price Return31.63%11.57%
52-Week Price Return64.42%8.92%
Month-to-Date Return5.08%-1.04%
Year-to-Date Return58.48%7.76%
10-Day Avg. Volume0.27M1.13M
3-Month Avg. Volume0.20M0.92M
3-Month Volatility24.05%22.75%
Beta1.261.20

Profitability

Return on Equity (TTM)

ESE

9.05%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

ESE’s Return on Equity of 9.05% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

KEYS

10.15%

Electronic Equipment, Instruments & Components Industry

Max
21.57%
Q3
13.27%
Median
8.55%
Q1
4.42%
Min
-4.21%

KEYS’s Return on Equity of 10.15% is on par with the norm for the Electronic Equipment, Instruments & Components industry, indicating its profitability relative to shareholder equity is typical for the sector.

ESE vs. KEYS: A comparison of their Return on Equity (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Net Profit Margin (TTM)

ESE

10.37%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

ESE’s Net Profit Margin of 10.37% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

KEYS

10.38%

Electronic Equipment, Instruments & Components Industry

Max
17.31%
Q3
10.85%
Median
7.26%
Q1
3.13%
Min
-3.00%

KEYS’s Net Profit Margin of 10.38% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.

ESE vs. KEYS: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Operating Profit Margin (TTM)

ESE

15.05%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

ESE’s Operating Profit Margin of 15.05% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

KEYS

16.96%

Electronic Equipment, Instruments & Components Industry

Max
30.04%
Q3
15.08%
Median
9.55%
Q1
4.27%
Min
-3.83%

An Operating Profit Margin of 16.96% places KEYS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ESE vs. KEYS: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Profitability at a Glance

SymbolESEKEYS
Return on Equity (TTM)9.05%10.15%
Return on Assets (TTM)5.76%5.46%
Net Profit Margin (TTM)10.37%10.38%
Operating Profit Margin (TTM)15.05%16.96%
Gross Profit Margin (TTM)40.57%62.37%

Financial Strength

Current Ratio (MRQ)

ESE

1.52

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

ESE’s Current Ratio of 1.52 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

KEYS

3.59

Electronic Equipment, Instruments & Components Industry

Max
4.57
Q3
2.85
Median
2.03
Q1
1.51
Min
0.62

KEYS’s Current Ratio of 3.59 is in the upper quartile for the Electronic Equipment, Instruments & Components industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ESE vs. KEYS: A comparison of their Current Ratio (MRQ) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ESE

0.41

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

ESE’s Debt-to-Equity Ratio of 0.41 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

KEYS

0.45

Electronic Equipment, Instruments & Components Industry

Max
1.14
Q3
0.54
Median
0.30
Q1
0.11
Min
0.00

KEYS’s Debt-to-Equity Ratio of 0.45 is typical for the Electronic Equipment, Instruments & Components industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ESE vs. KEYS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Interest Coverage Ratio (TTM)

ESE

9.52

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

ESE’s Interest Coverage Ratio of 9.52 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

KEYS

55.28

Electronic Equipment, Instruments & Components Industry

Max
79.05
Q3
36.62
Median
12.51
Q1
3.72
Min
-18.73

KEYS’s Interest Coverage Ratio of 55.28 is in the upper quartile for the Electronic Equipment, Instruments & Components industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ESE vs. KEYS: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Financial Strength at a Glance

SymbolESEKEYS
Current Ratio (MRQ)1.523.59
Quick Ratio (MRQ)1.042.74
Debt-to-Equity Ratio (MRQ)0.410.45
Interest Coverage Ratio (TTM)9.5255.28

Growth

Revenue Growth

ESE vs. KEYS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ESE vs. KEYS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ESE

0.15%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

ESE’s Dividend Yield of 0.15% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

KEYS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
5.36%
Q3
2.53%
Median
1.28%
Q1
0.16%
Min
0.00%

KEYS 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.

ESE vs. KEYS: A comparison of their Dividend Yield (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Dividend Payout Ratio (TTM)

ESE

7.19%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

ESE’s Dividend Payout Ratio of 7.19% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

KEYS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
218.94%
Q3
90.25%
Median
38.81%
Q1
3.69%
Min
0.00%

KEYS 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.

ESE vs. KEYS: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Dividend at a Glance

SymbolESEKEYS
Dividend Yield (TTM)0.15%0.00%
Dividend Payout Ratio (TTM)7.19%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ESE

48.07

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

At 48.07, ESE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Machinery industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

KEYS

55.26

Electronic Equipment, Instruments & Components Industry

Max
74.74
Q3
42.40
Median
26.55
Q1
20.05
Min
10.12

A P/E Ratio of 55.26 places KEYS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ESE vs. KEYS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Price-to-Sales Ratio (TTM)

ESE

4.98

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

With a P/S Ratio of 4.98, ESE trades at a valuation that eclipses even the highest in the Machinery industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

KEYS

5.73

Electronic Equipment, Instruments & Components Industry

Max
6.79
Q3
3.58
Median
2.05
Q1
1.29
Min
0.20

KEYS’s P/S Ratio of 5.73 is in the upper echelon for the Electronic Equipment, Instruments & Components 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.

ESE vs. KEYS: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Price-to-Book Ratio (MRQ)

ESE

3.74

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

ESE’s P/B Ratio of 3.74 is within the conventional range for the Machinery 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.

KEYS

4.97

Electronic Equipment, Instruments & Components Industry

Max
6.92
Q3
3.80
Median
2.23
Q1
1.42
Min
0.44

KEYS’s P/B Ratio of 4.97 is in the upper tier for the Electronic Equipment, Instruments & Components industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ESE vs. KEYS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Electronic Equipment, Instruments & Components industry benchmarks.

Valuation at a Glance

SymbolESEKEYS
Price-to-Earnings Ratio (TTM)48.0755.26
Price-to-Sales Ratio (TTM)4.985.73
Price-to-Book Ratio (MRQ)3.744.97
Price-to-Free Cash Flow Ratio (TTM)36.2921.24