Chart Industries (NASDAQ: GTLS) and ESCO Technologies (NYSE:ESE) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Earnings & Valuation

This table compares Chart Industries and ESCO Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Chart Industries $859.15 million 1.67 $28.23 million ($0.06) -776.20
ESCO Technologies $685.74 million 2.43 $53.70 million $2.07 31.21

ESCO Technologies has higher revenue, but lower earnings than Chart Industries. Chart Industries is trading at a lower price-to-earnings ratio than ESCO Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

ESCO Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Chart Industries does not pay a dividend. ESCO Technologies pays out 15.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Chart Industries and ESCO Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chart Industries 0 3 4 0 2.57
ESCO Technologies 0 0 5 0 3.00

Chart Industries presently has a consensus price target of $47.83, suggesting a potential upside of 2.69%. ESCO Technologies has a consensus price target of $68.00, suggesting a potential upside of 5.26%. Given ESCO Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe ESCO Technologies is more favorable than Chart Industries.

Volatility and Risk

Chart Industries has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, ESCO Technologies has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Chart Industries and ESCO Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chart Industries -0.21% 2.25% 1.19%
ESCO Technologies 7.83% 8.64% 4.80%

Institutional and Insider Ownership

89.5% of Chart Industries shares are held by institutional investors. Comparatively, 93.4% of ESCO Technologies shares are held by institutional investors. 2.1% of Chart Industries shares are held by company insiders. Comparatively, 2.3% of ESCO Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ESCO Technologies beats Chart Industries on 12 of the 16 factors compared between the two stocks.

About Chart Industries

Chart Industries, Inc. is a diversified global manufacturer of engineered equipment, packaged solutions, and value-add services used throughout the industrial gas, energy and biomedical industries. The Company operates through three business segments: Energy & Chemicals (E&C), Distribution & Storage (D&S) and BioMedical. The E&C and D&S segments manufacture products used in energy-related and industrial applications, such as the separation, liquefaction, distribution and storage of hydrocarbon and industrial gases. Through the BioMedical segment, it manufactures and supplies medical devices, including cryogenic and non-cryogenic equipment, used in respiratory healthcare. The Company also manufactures and supplies products for life sciences, including biological research and animal breeding. Applications in the BioMedical segment include Respiratory Therapy, Life Sciences, Commercial Oxygen and Nitrogen Generation.

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.

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