ATMU vs ESAB

For growth investors, Atmus Filtration Technologies Inc.

(ATMU) is the stronger pick with 5. 7% revenue growth year-over-year, versus 3. 7% for ESAB Corporation (ESAB). Atmus Filtration Technologies Inc. (ATMU) offers the better valuation at 21. 9x trailing P/E (18. 8x forward), making it the more compelling value choice. Analysts rate Atmus Filtration Technologies Inc. (ATMU) a "Buy" — based on 5 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, Atmus Filtration Technologies Inc.

(ATMU) is the cheapest at 21. 9x versus ESAB Corporation at 27. 5x. On forward P/E, ESAB Corporation is actually cheaper at 17. 7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Atmus Filtration Technologies Inc. wins at 2. 38x versus ESAB Corporation's 2. 44x.

Over the past 5 years, Atmus Filtration Technologies Inc.

(ATMU) delivered a total return of +155. 0%, compared to +107. 2% for ESAB Corporation (ESAB). Over 10 years, the gap is even starker: ATMU returned +155. 0% versus ESAB's +107. 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), ESAB Corporation (ESAB) is the lower-risk stock at 1.

24β versus Atmus Filtration Technologies Inc. 's 1. 34β — meaning ATMU is approximately 8% more volatile than ESAB relative to the S&P 500. On balance sheet safety, ESAB Corporation (ESAB) carries a lower debt/equity ratio of 65% versus 151% for Atmus Filtration Technologies Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Atmus Filtration Technologies Inc.

(ATMU) is pulling ahead at 5. 7% versus 3. 7% for ESAB Corporation (ESAB). On earnings-per-share growth, the picture is similar: Atmus Filtration Technologies Inc. grew EPS 12. 6% year-over-year, compared to -13. 7% for ESAB Corporation. Over a 3-year CAGR, ATMU leads at 4. 1% 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.

Atmus Filtration Technologies Inc.

(ATMU) is the more profitable company, earning 11. 8% net margin versus 8. 0% for ESAB Corporation — meaning it keeps 11. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ESAB leads at 17. 3% versus 16. 4% for ATMU. At the gross margin level — before operating expenses — ESAB leads at 35. 5%, 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, Atmus Filtration Technologies Inc. (ATMU) is the more undervalued stock at a PEG of 2. 38x versus ESAB Corporation's 2. 44x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, ESAB Corporation (ESAB) trades at 17. 7x forward P/E versus 18. 8x for Atmus Filtration Technologies Inc. — 1. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ESAB: 43. 2% to $146. 67.

All stocks in this comparison pay dividends.

Atmus Filtration Technologies Inc. (ATMU) offers the highest yield at 0. 4%, versus 0. 4% for ESAB Corporation (ESAB).

For long-horizon retirement investors, ESAB Corporation (ESAB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

24), +107. 2% 10Y return). Both have compounded well over 10 years (ESAB: +107. 2%, ATMU: +155. 0%), 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 Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.