GrafTech International (NYSE:EAF) vs. ESAB (NYSE:ESAB) Head to Head Comparison

GrafTech International (NYSE:EAF) and ESAB (NYSE:ESAB) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility & Risk

GrafTech International has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, ESAB has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GrafTech International and ESAB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	0	6	0	0	2.00
ESAB	0	2	7	0	2.78

GrafTech International presently has a consensus price target of $16.25, suggesting a potential upside of 63.83%. ESAB has a consensus price target of $141.44, suggesting a potential upside of 19.93%. Given GrafTech International’s higher possible upside, analysts plainly believe GrafTech International is more favorable than ESAB.

Insider & Institutional Ownership

92.8% of GrafTech International shares are owned by institutional investors. Comparatively, 91.1% of ESAB shares are owned by institutional investors. 1.0% of GrafTech International shares are owned by company insiders. Comparatively, 7.3% of ESAB shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares GrafTech International and ESAB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-41.64%	N/A	-12.27%
ESAB	9.36%	16.32%	7.54%

Earnings & Valuation

This table compares GrafTech International and ESAB”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$538.78 million	0.48	-$131.16 million	($8.20)	-1.21
ESAB	$2.74 billion	2.61	$264.84 million	$4.18	28.22

ESAB has higher revenue and earnings than GrafTech International. GrafTech International is trading at a lower price-to-earnings ratio than ESAB, indicating that it is currently the more affordable of the two stocks.

Summary

ESAB beats GrafTech International on 11 of the 14 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

About ESAB

ESAB Corporation engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment. Its comprehensive range of welding consumables includes electrodes, cored and solid wires, and fluxes using a range of specialty and other materials; and cutting consumables comprising electrodes, nozzles, shields, and tips. The company's equipment ranges from portable welding machines to large customized automated cutting and welding systems. It also offers a range of software and digital solutions to help its customers increase their productivity, remotely monitor their welding operations, and digitize their documentation. The company sells its products under the ESAB brand to various end markets, such as general industry, infrastructure, renewable energy, medical and life sciences, transportation, construction, and energy. It offers its products through independent distributors and direct salespeople. The company operates in North America, South America, Europe, the Middle East, India, Africa, and the Asia Pacific. ESAB Corporation was founded in 1904 and is headquartered in North Bethesda, Maryland.