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LECO vs. TXT: Lincoln Electric vs. Textron Stock Comparison

How do Lincoln Electric (LECO) and Textron (TXT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Lincoln Electric (LECO) and Textron (TXT) both fall under the Capital Goods industry group, but LECO is classified in Machinery while TXT is classified in Aerospace & Defense.

Company profile comparison for Lincoln Electric (LECO) and Textron (TXT)
Profile ItemLECOTXT
NameLincoln Electric Holdings, Inc.Textron Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryAerospace & Defense
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsAerospace & Defense
Market Capitalization14.91 billion USD14.15 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateApril 7, 1994February 21, 1973
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LECO
TXT
GSPC
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Lincoln Electric (LECO) vs. Textron (TXT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Lincoln Electric (LECO) and Textron (TXT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Lincoln Electric (LECO) and Textron (TXT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Total Return (1Y)27.30%3.94%
Total Return (3Y, Annualized)17.31%4.49%
Total Return (5Y, Annualized)16.33%2.30%

Risk Profile

Drawdown History

LECO
TXT
GSPC
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Lincoln Electric (LECO) vs. Textron (TXT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Lincoln Electric (LECO) and Textron (TXT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Volatility (1Y, Annualized)31.13%29.18%
Beta (5Y)1.170.87
Max Drawdown (5Y)-34.29%-37.33%
Avg. Volume (3M)409.99K1.72M

Risk-Adjusted Performance

Risk-Return Positioning

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LECO and TXT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Sharpe Ratio (1Y)0.74-0.01
Sortino Ratio (1Y)1.11-0.02

Profitability

ROE (TTM)

Lincoln Electric (LECO) at 38.75% sits in the top ROE quartile, while Textron (TXT) at 12.48% is closer to the peer norm — stronger capital efficiency for LECO.

LECO

Capital Goods industry group

38.75%

Max
40.55%
LECO
38.75%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%

TXT

Capital Goods industry group

12.48%

Max
40.55%
Q3
19.29%
TXT
12.48%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Lincoln Electric (LECO) at 12.40% retains a top-quartile share of revenue as profit, ahead of Textron (TXT) at 6.30%, which keeps about the industry-typical share.

LECO

Capital Goods industry group

12.40%

Max
27.47%
LECO
12.40%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%

TXT

Capital Goods industry group

6.30%

Max
27.47%
Q3
12.10%
TXT
6.30%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Lincoln Electric (LECO) at 18.29% and Textron (TXT) at 9.33% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

LECO

Capital Goods industry group

18.29%

Max
36.60%
Q3
18.33%
LECO
18.29%
Median
11.12%
Q1
5.14%
Min
-12.63%

TXT

Capital Goods industry group

9.33%

Max
36.60%
Q3
18.33%
Median
11.12%
TXT
9.33%
Q1
5.14%
Min
-12.63%
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
ROE (TTM)38.75%12.48%
ROA (TTM)13.32%4.51%
Net Margin (TTM)12.40%6.30%
Operating Margin (TTM)18.29%9.33%
Gross Margin (TTM)35.54%17.53%

Growth

Revenue Growth

Both Lincoln Electric (LECO) at 5.60% and Textron (TXT) at 8.01% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Lincoln Electric (LECO) at 14.36% and Textron (TXT) at 18.02% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Revenue Growth (YoY)5.60%8.01%
Revenue Growth (3Y CAGR)4.02%4.77%
EPS Growth (YoY)14.36%18.02%
EPS Growth (3Y CAGR)5.05%8.42%

Financial Strength

Current Ratio (MRQ)

Both Lincoln Electric (LECO) at 1.91 and Textron (TXT) at 1.80 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

LECO

Capital Goods industry group

1.91

Max
5.22
Q3
2.95
Median
2.08
LECO
1.91
Q1
1.43
Min
0.36

TXT

Capital Goods industry group

1.80

Max
5.22
Q3
2.95
Median
2.08
TXT
1.80
Q1
1.43
Min
0.36
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both Lincoln Electric (LECO) at 0.78 and Textron (TXT) at 0.52 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

LECO

Capital Goods industry group

0.78

Max
2.33
Q3
1.12
LECO
0.78
Median
0.60
Q1
0.29
Min
0.00

TXT

Capital Goods industry group

0.52

Max
2.33
Q3
1.12
Median
0.60
TXT
0.52
Q1
0.29
Min
0.00
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Current Ratio (MRQ)1.911.80
Debt / Equity (MRQ)0.780.52
Net Debt / EBITDA1.001.54

Dividends

Dividend Yield (TTM)

Lincoln Electric (LECO) at 1.16% delivers top-quartile income for its industry, while Textron (TXT) at 0.09% pays a more typical yield — both are credible income propositions, LECO the richer one.

LECO

Capital Goods industry group

1.16%

Max
2.66%
LECO
1.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%

TXT

Capital Goods industry group

0.09%

Max
2.66%
Q3
1.14%
Median
0.24%
TXT
0.09%
Q1
0.00%
Min
0.00%
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Textron (TXT) at 1.44% pays out a band-typical share of earnings, while Lincoln Electric (LECO) at 30.30% distributes more than its industry norm — less retained, thinner cover.

LECO

Capital Goods industry group

30.30%

Max
67.39%
LECO
30.30%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%

TXT

Capital Goods industry group

1.44%

Max
67.39%
Q3
28.02%
Median
6.86%
TXT
1.44%
Q1
0.00%
Min
0.00%
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
Dividend Yield (TTM)1.16%0.09%
Dividend Payout Ratio (TTM)30.30%1.44%

Valuation

P/E Ratio (TTM)

Textron (TXT) at 15.03 sits in the cheaper P/E ratio quartile, while Lincoln Electric (LECO) at 26.40 is closer to its industry’s usual earnings multiple — a discount for TXT, though growth and earnings durability still matter.

LECO

Capital Goods industry group

26.40

Max
59.38
Q3
35.92
LECO
26.40
Median
25.41
Q1
19.47
Min
3.03

TXT

Capital Goods industry group

15.03

Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
TXT
15.03
Min
3.03
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Textron (TXT) at 0.92 sits in the cheaper P/S ratio quartile while Lincoln Electric (LECO) at 3.21 prices around its industry’s middle — TXT costs less per dollar of sales, though read it alongside growth and margins.

LECO

Capital Goods industry group

3.21

Max
7.54
Q3
3.76
LECO
3.21
Median
2.15
Q1
1.03
Min
0.03

TXT

Capital Goods industry group

0.92

Max
7.54
Q3
3.76
Median
2.15
Q1
1.03
TXT
0.92
Min
0.03
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Textron (TXT) at 1.74 looks cheap against book in the lower P/B ratio quartile, while Lincoln Electric (LECO) at 9.59 carries a premium in the upper quartile — a clear price-to-book gap.

LECO

Capital Goods industry group

9.59

Max
9.66
LECO
9.59
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08

TXT

Capital Goods industry group

1.74

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
TXT
1.74
Min
-1.08
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Lincoln Electric (LECO) vs. Textron (TXT): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lincoln Electric (LECO) and Textron (TXT)
MetricLECOTXT
P/E Ratio (TTM)26.4015.03
P/S Ratio (TTM)3.210.92
P/B Ratio (MRQ)9.591.74
Free Cash Flow Yield (TTM)2.68%5.35%