ESCO Technologies (ESE) & Novume Solutions (NVMM) Critical Analysis

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

Profitability

This table compares ESCO Technologies and Novume Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESCO Technologies 11.09% 8.76% 4.91%
Novume Solutions -18.26% -210.88% -38.39%

Analyst Ratings

This is a summary of current recommendations for ESCO Technologies and Novume Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESCO Technologies 0 1 2 0 2.67
Novume Solutions 0 0 1 0 3.00

ESCO Technologies currently has a consensus target price of $73.50, indicating a potential upside of 12.73%. Novume Solutions has a consensus target price of $4.75, indicating a potential upside of 249.26%. Given Novume Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Novume Solutions is more favorable than ESCO Technologies.

Institutional & Insider Ownership

94.1% of ESCO Technologies shares are owned by institutional investors. Comparatively, 0.5% of Novume Solutions shares are owned by institutional investors. 2.6% of ESCO Technologies shares are owned by company insiders. Comparatively, 66.5% of Novume Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ESCO Technologies and Novume Solutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESCO Technologies $685.74 million 2.46 $53.70 million N/A N/A
Novume Solutions $22.13 million 0.89 -$5.04 million N/A N/A

ESCO Technologies has higher revenue and earnings than Novume Solutions.

Dividends

ESCO Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Novume Solutions does not pay a dividend.

Summary

ESCO Technologies beats Novume Solutions on 9 of the 12 factors compared between the two stocks.

ESCO Technologies Company Profile

ESCO Technologies Inc., through its subsidiaries, produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial applications worldwide. The company's Filtration segment supplies filtration and fluid control products, including filter elements, manifolds, assemblies, modules, indicators, custom and standard valves, filters, regulators, actuators, and other related components; and elastomeric-based signature reduction solutions. Its RF Shielding and Test segment designs and manufactures RF test facilities, acoustic test enclosures, RF and magnetically shielded rooms, secure communication facilities, RF measurement systems, and broadcast and recording studios; and components, such as RF absorptive materials, RF filters, active compensation systems, antennas, antenna masts, turntables, electric and magnetic probes, RF test cells, proprietary measurement software, and other test accessories to perform various tests. This segment also provides calibration for antennas and field probes, chamber certification, field surveys, customer training, and various product tests. The company's Utility Solutions Group segment develops, manufactures, and delivers diagnostic testing solutions, which include electric power grid and enterprise management systems for electrical equipment. This segment's solutions include protection diagnostics with the Doble Protection Suite and F6000 series, the M4100 and transformational technology of the M7100 Doble Tester, the dobleARMS asset risk management system, and Doble's Enoserv PowerBase and DUCe compliance tools. Its Technical Packaging segment offers thermoformed products and packaging materials for medical, pharmaceutical, retail, food, and electronic applications. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. ESCO Technologies Inc. was founded in 1990 and is headquartered in St. Louis, Missouri.

Novume Solutions Company Profile

Novume Solutions, Inc., through its subsidiaries, provides consulting and technical support services to government contracting market in the United States. It offers market intelligence and opportunity identification, capture and strategic advisory, proposal strategy and development, teaming support, and managed human capital services to assist government contractors. The company also provides risk mitigation and crisis management services comprising predictive intelligence, business continuity, risk assessment, crisis management and communications, emergency and cyber incident response, behavioral risk and threat assessment, and workplace violence prevention. In addition, it offers BERTHA, a behavioral risk and threat assessment program, to identify early warning signs that may be exhibited by an individual before they are on a path to violence. Further, the company provides specialty staffing services, which include specialized contract personnel, temp-to-hire professionals, direct hires, and temporary or seasonal hires to the Department of Defense and various group of companies in the aerospace and aviation industry. Additionally, it offers compensation assessments, program maturity effectiveness, event impact management reviews, and IT resiliency and critical supply analyses services; and automated traffic safety enforcement solutions, including speed, red light, and move-over and distracted driving camera systems, as well as citation management software and secure electronic evidence storage systems. Novume Solutions, Inc. was founded in 2017 and is headquartered in Chantilly, Virginia.

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