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LECO vs SXI
Which Stock Would AI Choose? Lincoln Electric Holdings (LECO) vs. Standex International (SXI) Stock Comparison
Key Takeaways
- Lincoln Electric (LECO) is the global leader in arc welding and cutting products with a $13.8 billion market capitalization, delivering record FY2025 sales of $4.23 billion and a robust 17% GAAP operating margin.
- Standex International (SXI) is a diversified industrial manufacturer with a $3.7 billion market cap that has posted exceptional YTD price appreciation of approximately 40%, driven by fast-growth market exposure to electrification, aerospace, and grid modernization.
- LECO offers a higher dividend yield (1.24%), a lower P/E ratio (approximately 26), and a superior return on equity (ROE) of roughly 39%, appealing to value-oriented and income-seeking investors.
- SXI carries a significantly higher P/E ratio (around 37) and has experienced notable price volatility in recent weeks, reflecting both the premium assigned to its growth narrative and heightened sensitivity to shifting market sentiment.
- Both companies are scheduled to report earnings on July 30, 2026, making the near-term period a critical inflection point for relative performance comparisons.
- Tickeron's AI-driven analysis has recently assigned SXI a "StrongBuy" rating while rating LECO as a "Hold," based on trend strength and technical positioning.
Introduction
Investors navigating the industrial sector often encounter choices between established, large-cap incumbents and more agile, growth-oriented manufacturers. LECO and SXI represent precisely this kind of contrast. Lincoln Electric Holdings brings a 130-year legacy in welding technology, scale-driven profitability, and consistent shareholder returns. Standex International offers diversified exposure to secular growth themes — including grid electrification, renewable energy, aerospace, and defense — alongside an active acquisition strategy. This comparison examines how these two industrial manufacturers stack up across fundamentals, recent momentum, risk factors, and AI-driven market analysis, providing a balanced framework for traders and investors evaluating relative positioning in the current market environment.
LECO Overview and Recent Performance
LECO, headquartered in Cleveland, Ohio, is the world's largest designer and manufacturer of arc welding, cutting, and brazing products. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. Its customer base spans general fabrication, oil and gas, power generation, automotive, construction, and shipbuilding industries.
Financially, Lincoln Electric closed fiscal year 2025 with record sales of $4.23 billion, representing 5.6% year-over-year growth. Adjusted earnings per share (EPS) reached a record $9.87, while the company generated $661 million in cash flows from operations and returned $507 million to shareholders through dividends and share repurchases. Operating margins held firm at 17.0% on a GAAP (Generally Accepted Accounting Principles) basis, underscoring disciplined cost management.
In recent weeks, LECO shares have traded in the $245–$260 range, reflecting a modest single-digit year-to-date gain. The stock pulled back from its 52-week high near $310 reached earlier in 2026, mirroring broader industrial sector softness. With a P/E (price-to-earnings) ratio of approximately 26, a beta of roughly 1.2, and a dividend yield of 1.24%, Lincoln Electric presents a relatively defensive profile within the industrial machinery space. The company's recently announced RISE strategy and 2030 targets signal management's confidence in sustaining growth and margin expansion through the cycle.
SXI Overview and Recent Performance
SXI, based in Salem, New Hampshire, is a diversified industrial manufacturer operating across five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The company serves a broad array of end markets, including aerospace, defense, medical, space commercialization, and electrical grid infrastructure.
Fiscal year 2025 was a transformative period for Standex. The acquisition of the Amran/Narayan Group — now Standex Electronics Grid — meaningfully expanded the company's presence in electrification, data centers, and grid modernization markets. Additionally, the purchase of McStarlite strengthened its aerospace forming capabilities. Full-year FY2025 revenue grew 9.6% to approximately $790 million, and the company achieved record adjusted operating margins of 19.1%, up 210 basis points year-over-year. Fast-growth market sales reached approximately 28% of total revenue, with management targeting more than $340 million in such sales by fiscal 2028.
Price action in SXI has been notably dynamic. After climbing to a 52-week high above $360 in late June 2026, the stock corrected sharply in early July, briefly dipping below $300 before stabilizing around the $303–$310 range. Despite this recent volatility, Standex holds a year-to-date gain of approximately 40% and a one-year return exceeding 85%. The stock currently trades at a P/E ratio of approximately 37, reflecting a premium valuation that the market assigns to its growth trajectory. Its beta of roughly 1.03 suggests sensitivity broadly in line with the overall market, though recent swings point to elevated near-term turbulence.
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Head-to-Head Comparison
When comparing LECO and SXI, several structural contrasts emerge:
Scale and Profitability: Lincoln Electric generates nearly five times the revenue of Standex ($4.23 billion vs. $790 million) and boasts an ROE of approximately 39%, compared to Standex's roughly 14%. For investors prioritizing established profitability and capital efficiency, LECO holds a clear advantage.
Growth Trajectory: Standex's deliberate pivot toward fast-growth markets — electrification, grid modernization, space, and defense — has translated into superior recent price momentum. Its one-year return of roughly 87% dramatically outpaces Lincoln Electric's approximately 14% over the same period. The market is pricing in continued above-industry expansion for SXI.
Valuation and Income: LECO trades at a significantly lower earnings multiple (P/E ~26 vs. ~37), offers a nearly three-times-higher dividend yield (1.24% vs. 0.44%), and has a three-decade track record of consecutive dividend growth. Income-oriented and value-conscious investors may find this profile more compelling.
Risk Profile: SXI carries higher execution risk tied to acquisition integration and the inherently lumpy nature of project-based revenue in aerospace and grid infrastructure. LECO, by contrast, faces cyclical exposure to heavy industry and manufacturing capital expenditure cycles. Standex's recent sharp pullback from its June highs underscores the stock's potential for volatility.
Market Sentiment: The divergence in recent analyst activity is notable. SXI has received multiple analyst upgrades in recent months, while LECO has seen more mixed coverage, with price targets ranging toward $300–$320, implying modest upside from current levels.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, and sector-level tailwinds, Tickeron's AI-driven analysis currently leans in favor of SXI. The algorithmic assessment, which rates the stock as a "StrongBuy," reflects the persistence of its upward trend over multiple timeframes, supported by tangible catalysts such as expanding fast-growth market penetration, a robust new product pipeline (more than 15 launches planned), and geographic capacity expansion in Croatia and Mexico. That said, LECO maintains superior fundamental ratings in key areas — notably its SMR (Sales, Margin, Return) score — and offers a more conservative risk-reward profile. The AI's preference for SXI appears rooted in the strength and consistency of its price trend rather than any structural deficiency in Lincoln Electric. Investors should weigh whether they prioritize trend momentum and growth exposure or valuation stability and income reliability when evaluating these two distinct industrial manufacturers.
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 LECO is a StrongBuy and SXI is a StrongBuy.
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).
LECO’s FA Score shows that 2 FA rating(s) are green whileSXI’s FA Score has 1 green FA rating(s).
- LECO’s FA Score: 2 green, 3 red.
- SXI’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.
LECO’s TA Score shows that 5 TA indicator(s) are bullish while SXI’s TA Score has 6 bullish TA indicator(s).
- LECO’s TA Score: 5 bullish, 4 bearish.
- SXI’s TA Score: 6 bullish, 4 bearish.
Price Growth
LECO (@Tools & Hardware) experienced а +3.56% price change this week, while SXI (@Industrial Machinery) price change was +5.29% for the same time period.
The average weekly price growth across all stocks in the @Tools & Hardware industry was -1.51%. For the same industry, the average monthly price growth was +3.61%, and the average quarterly price growth was +3.22%.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.37%. For the same industry, the average monthly price growth was -1.21%, and the average quarterly price growth was -4.76%.
Reported Earning Dates
LECO is expected to report earnings on Oct 22, 2026.
SXI is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Tools & Hardware (-1.51% weekly)Tools & Hardware industry includes companies that manufacture security products, storage cabinets, steel rules and tapes, calipers, shoe hook fasteners, lumber, structural materials and other related supplies. Stanley Black & Decker, Inc., Snap-on Incorporated and L.S. Starrett Company are some of the largest, established players in this industry. The industry is also seeing rapid growth in online sales. The proliferation of do-it-yourself (DIY) projects has boosted industry demand. But oil price volatility poses potential risks to this industry, particularly to e-commerce companies which spend on services of shipping companies, which might alter charges based on oil price movements.
@Industrial Machinery (+1.37% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| LECO | SXI | LECO / SXI | |
| Capitalization | 15.1B | 3.98B | 380% |
| EBITDA | 875M | 229M | 382% |
| Gain YTD | 16.448 | 51.567 | 32% |
| P/E Ratio | 27.73 | 37.80 | 73% |
| Revenue | 4.48B | 885M | 506% |
| Total Cash | 242M | N/A | - |
| Total Debt | 1.15B | 522M | 220% |
LECO | SXI | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 68 Overvalued | |
PROFIT vs RISK RATING 1..100 | 27 | 12 | |
SMR RATING 1..100 | 26 | 61 | |
PRICE GROWTH RATING 1..100 | 47 | 38 | |
P/E GROWTH RATING 1..100 | 47 | 59 | |
SEASONALITY SCORE 1..100 | 85 | 65 |
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.
SXI's Valuation (68) in the Miscellaneous Manufacturing industry is in the same range as LECO (83) in the Industrial Machinery industry. This means that SXI’s stock grew similarly to LECO’s over the last 12 months.
SXI's Profit vs Risk Rating (12) in the Miscellaneous Manufacturing industry is in the same range as LECO (27) in the Industrial Machinery industry. This means that SXI’s stock grew similarly to LECO’s over the last 12 months.
LECO's SMR Rating (26) in the Industrial Machinery industry is somewhat better than the same rating for SXI (61) in the Miscellaneous Manufacturing industry. This means that LECO’s stock grew somewhat faster than SXI’s over the last 12 months.
SXI's Price Growth Rating (38) in the Miscellaneous Manufacturing industry is in the same range as LECO (47) in the Industrial Machinery industry. This means that SXI’s stock grew similarly to LECO’s over the last 12 months.
LECO's P/E Growth Rating (47) in the Industrial Machinery industry is in the same range as SXI (59) in the Miscellaneous Manufacturing industry. This means that LECO’s stock grew similarly to SXI’s over the last 12 months.
| LECO | SXI | |
|---|---|---|
| RSI ODDS (%) | N/A | 5 days ago 72% |
| Stochastic ODDS (%) | 5 days ago 52% | 5 days ago 63% |
| Momentum ODDS (%) | 5 days ago 61% | 5 days ago 75% |
| MACD ODDS (%) | 5 days ago 68% | 5 days ago 76% |
| TrendWeek ODDS (%) | 5 days ago 64% | 5 days ago 65% |
| TrendMonth ODDS (%) | 5 days ago 62% | 5 days ago 64% |
| Advances ODDS (%) | 7 days ago 62% | 5 days ago 66% |
| Declines ODDS (%) | 13 days ago 58% | 14 days ago 55% |
| BollingerBands ODDS (%) | 5 days ago 47% | 5 days ago 61% |
| Aroon ODDS (%) | 5 days ago 53% | 5 days ago 52% |
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SXI and
Correlation & Price change
A.I.dvisor indicates that over the last year, SXI has been loosely correlated with LECO. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if SXI jumps, then LECO could also see price increases.
| Ticker / NAME | Correlation To SXI | 1D Price Change % | ||
|---|---|---|---|---|
| SXI | 100% | -3.52% | ||
| LECO - SXI | 63% Loosely correlated | -1.64% | ||
| RBC - SXI | 63% Loosely correlated | -1.90% | ||
| NPO - SXI | 61% Loosely correlated | -0.14% | ||
| SPXC - SXI | 59% Loosely correlated | -1.54% | ||
| SNA - SXI | 58% Loosely correlated | -1.26% | ||
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