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.
| Profile Item | LECO | TXT |
|---|---|---|
| Name | Lincoln Electric Holdings, Inc. | Textron Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Machinery | Aerospace & Defense |
| GICS Sub-Industry | Industrial Machinery & Supplies & Components | Aerospace & Defense |
| Market Capitalization | 14.91 billion USD | 14.15 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | April 7, 1994 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LECO | TXT |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | LECO | TXT |
|---|---|---|
| Volatility (1Y, Annualized) | 31.13% | 29.18% |
| Beta (5Y) | 1.17 | 0.87 |
| Max Drawdown (5Y) | -34.29% | -37.33% |
| Avg. Volume (3M) | 409.99K | 1.72M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LECO | TXT |
|---|---|---|
| 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%
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%
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%
Profitability Metrics
| Metric | LECO | TXT |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | LECO | TXT |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | LECO | TXT |
|---|---|---|
| Current Ratio (MRQ) | 1.91 | 1.80 |
| Debt / Equity (MRQ) | 0.78 | 0.52 |
| Net Debt / EBITDA | 1.00 | 1.54 |
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%
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%
Dividend Metrics
| Metric | LECO | TXT |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | LECO | TXT |
|---|---|---|
| P/E Ratio (TTM) | 26.40 | 15.03 |
| P/S Ratio (TTM) | 3.21 | 0.92 |
| P/B Ratio (MRQ) | 9.59 | 1.74 |
| Free Cash Flow Yield (TTM) | 2.68% | 5.35% |