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ESAB vs LSTR

ESAB
ESAB Corporation
NEUTRAL
Price
$101.28
Market Cap
$6.17B
Sector
Industrials
AI Confidence
85%
LSTR
Landstar System, Inc.
BEARISH
Price
$168.27
Market Cap
$5.73B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ESAB
24.7
LSTR
50.84
Forward P/E
ESAB
15.79
LSTR
25.07
P/B Ratio
ESAB
2.84
LSTR
7.2
P/S Ratio
ESAB
2.17
LSTR
1.2
EV/EBITDA
ESAB
13.35
LSTR
23.71

Profitability

Gross Margin
ESAB
36.88%
LSTR
19.12%
Operating Margin
ESAB
16.8%
LSTR
2.67%
Profit Margin
ESAB
7.98%
LSTR
2.42%
ROE
ESAB
12.89%
LSTR
13.01%
ROA
ESAB
6.63%
LSTR
6.59%

Growth

Revenue Growth
ESAB
7.5%
LSTR
-2.9%
Earnings Growth
ESAB
-31.6%
LSTR
-46.5%

Financial Health

Debt/Equity
ESAB
0.61
LSTR
0.17
Current Ratio
ESAB
1.9
LSTR
1.75
Quick Ratio
ESAB
0.96
LSTR
1.69

Dividends

Dividend Yield
ESAB
0.39%
LSTR
0.95%
Payout Ratio
ESAB
9.27%
LSTR
47.13%

AI Verdict

ESAB NEUTRAL

ESAB exhibits strong operational health with a Piotroski F-Score of 7/9 and a healthy balance sheet (Debt/Equity 0.61), yet it faces a significant valuation disconnect. While the company has a remarkable track record of beating earnings estimates for 16 consecutive quarters, the current price of $101.28 trades at a substantial premium to its Graham Number ($57.36) and Intrinsic Value ($28.70). The outlook is conflicted: analysts maintain a 'strong_buy' with a target of $136.56, but technical trends are bearish (0/100) and YoY earnings growth has plummeted by 31.6%.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Exceptional earnings track record with 16 consecutive quarters of beats
Conservative leverage with a Debt/Equity ratio of 0.61 and Current Ratio of 1.90
Risks
Severe valuation premium relative to Graham and Intrinsic value formulas
Sharp decline in YoY earnings growth (-31.60%)
High exposure to cyclical industrial capital spending in developed markets
LSTR BEARISH

LSTR exhibits a severe valuation disconnect, trading at $168.27 despite a Graham Number of $41.71 and an Intrinsic Value of $23.17. While the Piotroski F-Score of 4/9 indicates stable financial health and the low Debt/Equity ratio (0.17) provides a safety buffer, these are overshadowed by crashing fundamentals. With YoY earnings growth at -46.50% and revenue declining, the current P/E of 50.84 is unsustainable. The bearish technical trend (10/100) and analyst target price ($152.27) further suggest significant downside risk.

Strengths
Very low Debt/Equity ratio (0.17) indicating minimal leverage risk
Healthy liquidity with a Current Ratio of 1.75 and Quick Ratio of 1.69
Stable Piotroski F-Score (4/9) suggesting no immediate operational collapse
Risks
Extreme overvaluation relative to Graham Number ($41.71) and Intrinsic Value ($23.17)
Severe earnings contraction with YoY growth at -46.50%
Negative revenue growth (-2.90%) indicating a lack of top-line momentum

Compare Another Pair

ESAB vs LSTR: Head-to-Head Comparison

This page compares ESAB Corporation (ESAB) and Landstar System, Inc. (LSTR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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