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ESE vs ST
Which Stock Would AI Choose? ESCO Technologies (ESE) vs. Sensata Technologies (ST) Stock Comparison
Key Takeaways
- ESCO Technologies and Sensata Technologies both operate in the engineered components and sensing solutions space, yet they serve distinctly different end markets, creating a meaningful contrast for sector-aware investors.
- ESCO Technologies wrapped up its fiscal year 2025 with record sales, orders, and backlog, fueled by a transformative acquisition in the maritime defense space and robust organic growth across all three operating segments.
- Sensata Technologies completed the first year of a multi-year transformation, posting modest organic revenue growth and dramatically improved free cash flow, though headline results were weighed down by divestitures and a significant non-cash goodwill impairment.
- From a momentum perspective, ESCO's revenue growth trajectory and expanding margins stand in contrast to Sensata's restructuring-heavy, margin-rebuilding narrative.
- Both companies have generated strong operating cash flow, but ESCO's forward guidance points to double-digit growth, while Sensata's outlook reflects more incremental improvement.
Introduction
Comparing ESE (ESCO Technologies) and ST (Sensata Technologies) offers a compelling window into two different stages of the industrial technology lifecycle. ESCO Technologies is a diversified engineered products company riding a powerful defense and utility infrastructure cycle. Sensata Technologies is a global sensor and electrical protection leader navigating a deliberate turnaround. Both attract investor attention, but for different reasons. This comparison is particularly relevant for investors and traders evaluating relative performance, sector exposure, growth trajectory, and risk profiles across mid-cap industrial and technology holdings. Understanding where each company stands in its respective business cycle can help clarify which name aligns better with current market positioning.
ESE Overview and Recent Performance
ESCO Technologies Inc. (ESE) is a St. Louis-based producer of engineered products and systems serving aerospace and defense (A&D), utility solutions, and RF test and measurement markets. The company's fiscal year 2025, which ended September 30, was transformational. Revenue grew 19% to $1.1 billion, and adjusted earnings per share (EPS) from continuing operations surged 26% to $6.03. The standout catalyst was the acquisition of Maritime Solutions, which expanded ESCO's naval defense footprint and contributed meaningfully to both top-line growth and a record year-end backlog of $1.1 billion. Entered orders for the full year reached $1.6 billion, reflecting a book-to-bill ratio of 1.43x — a strong indicator of sustained demand. The company also completed the divestiture of its VACCO Industries space business, sharpening its focus on higher-margin defense and utility markets. In recent months, ESCO's management issued fiscal 2026 guidance calling for 16% to 20% revenue growth and 24% to 29% adjusted EPS growth, reflecting continued momentum in Navy programs, commercial aerospace, and electric grid modernization spending.
ST Overview and Recent Performance
Sensata Technologies Holding plc (ST), headquartered in Swindon, United Kingdom, is a leading global supplier of sensors, electrical protection products, and sensing solutions for the automotive, industrial, and aerospace/defense sectors. The company's fiscal year 2025, which ended December 31, was characterized as the first year of a comprehensive transformation journey. Reported revenue declined 5.8% to $3.70 billion, driven primarily by previously disclosed divestitures and product lifecycle management actions, though organic revenue was essentially flat year over year. Adjusted EPS of $3.42 was down marginally, by 0.6%. A significant headwind was a $225.7 million non-cash goodwill impairment charge tied to the Dynapower business, reflecting headwinds in clean energy policy and electrification-related excess capacity. On a more constructive note, Sensata delivered dramatically improved free cash flow of $490.2 million at a 97% conversion rate, returned to year-over-year revenue growth in the fourth quarter, and expanded adjusted operating margins sequentially throughout the year. The company also reorganized into three new reporting segments — Automotive, Industrials, and Aerospace, Defense and Commercial Equipment — as part of its operational reset.
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Head-to-Head Comparison
While both ESCO Technologies and Sensata Technologies operate in the industrial technology arena, their investment profiles diverge meaningfully. Business Model: ESCO derives a growing share of revenue from U.S. defense spending, particularly Navy submarine programs, alongside utility grid testing and RF measurement — markets with long procurement cycles and high barriers to entry. Sensata is more heavily exposed to global automotive and industrial end markets, with cyclical sensitivity to vehicle production volumes and capital spending trends. Growth Dynamics: ESCO is currently in an expansionary phase, with organic growth complemented by the Maritime acquisition, while Sensata is in a restructuring phase, actively divesting non-core assets and absorbing impairment charges. Margins: ESCO's adjusted EBIT (Earnings Before Interest and Taxes) margins are improving across all three segments and are guided to reach approximately 21% in fiscal 2026. Sensata's adjusted operating margins held near 19%, with tariff pass-through costs creating modest dilution. Risk Factors: ESCO faces integration risk from the Maritime acquisition and elevated leverage post-transaction. Sensata's risk profile includes exposure to electric vehicle (EV) program cancellations and clean energy policy uncertainty, evidenced by the Dynapower impairment. Capital Returns: Sensata pays a quarterly dividend of $0.12 per share and repurchased $120.6 million in shares during fiscal 2025, while ESCO maintains a modest $0.08 quarterly dividend with a focus on debt reduction and organic investment.
Tickeron AI Verdict
Based on observable trends and relative positioning, Tickeron's AI analytical framework would likely favor ESE in the current market environment. The rationale rests on several converging factors: ESCO's revenue growth is accelerating, its record backlog of $1.1 billion provides strong forward visibility, and management's guidance implies sustained double-digit growth across sales, adjusted EBIT, and adjusted EPS. The company's tilt toward defense and utility infrastructure — both areas with multi-year secular tailwinds — offers a degree of insulation from consumer-driven cyclicality. Sensata Technologies, while making commendable progress in free cash flow generation and sequential margin improvement, is still navigating a turnaround that includes significant restructuring charges, a major goodwill impairment, and only modest organic growth. That said, the probabilistic nature of AI-driven analysis means Sensata's transformation could gain momentum if its renewed focus on automotive outgrowth and industrial sensing applications begins to translate into meaningful top-line expansion. For now, ESCO's combination of trend consistency, catalyst visibility, and end-market strength makes it the more compelling candidate in a systematic head-to-head comparison.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ESE is a StrongBuy and ST is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ESE’s FA Score shows that 2 FA rating(s) are green whileST’s FA Score has 1 green FA rating(s).
- ESE’s FA Score: 2 green, 3 red.
- ST’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ESE’s TA Score shows that 3 TA indicator(s) are bullish while ST’s TA Score has 3 bullish TA indicator(s).
- ESE’s TA Score: 3 bullish, 6 bearish.
- ST’s TA Score: 3 bullish, 6 bearish.
Price Growth
ESE (@Electronic Equipment/Instruments) experienced а -3.81% price change this week, while ST (@Electronic Equipment/Instruments) price change was +1.27% for the same time period.
The average weekly price growth across all stocks in the @Electronic Equipment/Instruments industry was -1.38%. For the same industry, the average monthly price growth was -8.67%, and the average quarterly price growth was +3.13%.
Reported Earning Dates
ESE is expected to report earnings on Aug 06, 2026.
ST is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Electronic Equipment/Instruments (-1.38% weekly)This industry manufactures electronic products used in various critical and sophisticated technologies, including laser-based systems, circuit and continuity testers, electro-optical measuring instruments and high-speed precision weighing and inspection equipment. Some major companies operating in this business are Canon Inc., Keysight Technologies Inc., and Fortive Corp.
| ESE | ST | ESE / ST | |
| Capitalization | 8.17B | 6.74B | 121% |
| EBITDA | 293M | 555M | 53% |
| Gain YTD | 61.513 | 39.889 | 154% |
| P/E Ratio | 62.06 | 74.66 | 83% |
| Revenue | 1.25B | 3.78B | 33% |
| Total Cash | N/A | 403M | - |
| Total Debt | 191M | 2.45B | 8% |
ESE | ST | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 6 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 86 Overvalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 4 | 100 | |
SMR RATING 1..100 | 44 | 88 | |
PRICE GROWTH RATING 1..100 | 44 | 41 | |
P/E GROWTH RATING 1..100 | 19 | 11 | |
SEASONALITY SCORE 1..100 | 55 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ST's Valuation (59) in the Electronic Equipment Or Instruments industry is in the same range as ESE (86) in the Aerospace And Defense industry. This means that ST’s stock grew similarly to ESE’s over the last 12 months.
ESE's Profit vs Risk Rating (4) in the Aerospace And Defense industry is significantly better than the same rating for ST (100) in the Electronic Equipment Or Instruments industry. This means that ESE’s stock grew significantly faster than ST’s over the last 12 months.
ESE's SMR Rating (44) in the Aerospace And Defense industry is somewhat better than the same rating for ST (88) in the Electronic Equipment Or Instruments industry. This means that ESE’s stock grew somewhat faster than ST’s over the last 12 months.
ST's Price Growth Rating (41) in the Electronic Equipment Or Instruments industry is in the same range as ESE (44) in the Aerospace And Defense industry. This means that ST’s stock grew similarly to ESE’s over the last 12 months.
ST's P/E Growth Rating (11) in the Electronic Equipment Or Instruments industry is in the same range as ESE (19) in the Aerospace And Defense industry. This means that ST’s stock grew similarly to ESE’s over the last 12 months.
| ESE | ST | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 61% | N/A |
| Stochastic ODDS (%) | 4 days ago 71% | 4 days ago 72% |
| Momentum ODDS (%) | 4 days ago 53% | 4 days ago 60% |
| MACD ODDS (%) | 4 days ago 53% | 4 days ago 62% |
| TrendWeek ODDS (%) | 4 days ago 52% | 4 days ago 62% |
| TrendMonth ODDS (%) | 4 days ago 45% | 4 days ago 64% |
| Advances ODDS (%) | 4 days ago 63% | 7 days ago 60% |
| Declines ODDS (%) | 6 days ago 52% | 12 days ago 69% |
| BollingerBands ODDS (%) | 4 days ago 61% | 4 days ago 81% |
| Aroon ODDS (%) | 4 days ago 40% | 4 days ago 69% |
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ESE and
Correlation & Price change
A.I.dvisor indicates that over the last year, ESE has been loosely correlated with MKSI. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if ESE jumps, then MKSI could also see price increases.
| Ticker / NAME | Correlation To ESE | 1D Price Change % | ||
|---|---|---|---|---|
| ESE | 100% | +1.21% | ||
| MKSI - ESE | 53% Loosely correlated | +1.41% | ||
| KEYS - ESE | 51% Loosely correlated | +2.04% | ||
| TDY - ESE | 47% Loosely correlated | +0.98% | ||
| ST - ESE | 44% Loosely correlated | -3.54% | ||
| VPG - ESE | 40% Loosely correlated | +4.70% | ||
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