Head-To-Head Analysis: ESAB (NYSE:ESAB) versus MSA Safety Incorporporated (NYSE:MSA)

MSA Safety Incorporporated (NYSE:MSA) and ESAB (NYSE:ESAB) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Dividends

MSA Safety Incorporporated pays an annual dividend of $2.16 per share and has a dividend yield of 1.2%. ESAB pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. MSA Safety Incorporporated pays out 26.9% of its earnings in the form of a dividend. ESAB pays out 17.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MSA Safety Incorporporated has raised its dividend for 56 consecutive years and ESAB has raised its dividend for 3 consecutive years. MSA Safety Incorporporated is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

MSA Safety Incorporporated has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, ESAB has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

92.5% of MSA Safety Incorporporated shares are owned by institutional investors. Comparatively, 91.1% of ESAB shares are owned by institutional investors. 0.7% of MSA Safety Incorporporated shares are owned by company insiders. Comparatively, 7.2% of ESAB shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MSA Safety Incorporporated and ESAB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSA Safety Incorporporated	16.13%	25.13%	13.24%
ESAB	5.75%	14.48%	5.99%

Analyst Recommendations

This is a summary of current ratings and recommmendations for MSA Safety Incorporporated and ESAB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSA Safety Incorporporated	0	4	2	0	2.33
ESAB	0	1	7	0	2.88

MSA Safety Incorporporated currently has a consensus target price of $211.33, suggesting a potential upside of 19.22%. ESAB has a consensus target price of $135.57, suggesting a potential upside of 106.98%. Given ESAB’s stronger consensus rating and higher possible upside, analysts clearly believe ESAB is more favorable than MSA Safety Incorporporated.

Valuation and Earnings

This table compares MSA Safety Incorporporated and ESAB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSA Safety Incorporporated	$1.95 billion	3.51	$278.92 million	$8.04	22.05
ESAB	$3.00 billion	1.36	$226.77 million	$2.79	23.48

MSA Safety Incorporporated has higher earnings, but lower revenue than ESAB. MSA Safety Incorporporated is trading at a lower price-to-earnings ratio than ESAB, indicating that it is currently the more affordable of the two stocks.

Summary

MSA Safety Incorporporated beats ESAB on 9 of the 17 factors compared between the two stocks.

About MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

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.