ESE vs BMI

For growth investors, Badger Meter, Inc.

(BMI) is the stronger pick with 10. 9% revenue growth year-over-year, versus 6. 7% for ESCO Technologies Inc. (ESE). Badger Meter, Inc. (BMI) offers the better valuation at 25. 8x trailing P/E (27. 5x forward), making it the more compelling value choice. Analysts rate ESCO Technologies Inc. (ESE) a "Buy" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Badger Meter, Inc.

(BMI) is the cheapest at 25. 8x versus ESCO Technologies Inc. at 29. 1x. On forward P/E, Badger Meter, Inc. is actually cheaper at 27. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ESCO Technologies Inc. wins at 0. 61x versus Badger Meter, Inc. 's 1. 19x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, ESCO Technologies Inc.

(ESE) delivered a total return of +204. 5%, compared to +40. 9% for Badger Meter, Inc. (BMI). Over 10 years, the gap is even starker: ESE returned +777. 2% versus BMI's +253. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Badger Meter, Inc.

(BMI) is the lower-risk stock at 0. 87β versus ESCO Technologies Inc. 's 1. 19β — meaning ESE is approximately 37% more volatile than BMI relative to the S&P 500.

By revenue growth (latest reported year), Badger Meter, Inc.

(BMI) is pulling ahead at 10. 9% versus 6. 7% for ESCO Technologies Inc. (ESE). On earnings-per-share growth, the picture is similar: ESCO Technologies Inc. grew EPS 193. 1% year-over-year, compared to 13. 2% for Badger Meter, Inc.. Over a 3-year CAGR, BMI leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

ESCO Technologies Inc.

(ESE) is the more profitable company, earning 27. 3% net margin versus 15. 5% for Badger Meter, Inc. — meaning it keeps 27. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BMI leads at 20. 0% versus 15. 8% for ESE. At the gross margin level — before operating expenses — ESE leads at 42. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, ESCO Technologies Inc. (ESE) is the more undervalued stock at a PEG of 0. 61x versus Badger Meter, Inc. 's 1. 19x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Badger Meter, Inc. (BMI) trades at 27. 5x forward P/E versus 41. 2x for ESCO Technologies Inc. — 13. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BMI: 39. 1% to $172. 14.

In this comparison, BMI (1.

2% yield) pays a dividend. ESE does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Badger Meter, Inc.

(BMI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 1. 2% yield, +253. 2% 10Y return). Both have compounded well over 10 years (BMI: +253. 2%, ESE: +777. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

BMI pays a dividend while ESE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.