Stanley Black & Decker (SWK) vs. Its Competitors Financial Survey

Stanley Black & Decker (NYSE: SWK) is one of 57 public companies in the “Industrial Machinery & Equipment” industry, but how does it weigh in compared to its competitors? We will compare Stanley Black & Decker to related companies based on the strength of its institutional ownership, earnings, analyst recommendations, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

83.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 79.5% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 1.2% of Stanley Black & Decker shares are owned by company insiders. Comparatively, 5.4% of shares of all “Industrial Machinery & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Stanley Black & Decker and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stanley Black & Decker $11.84 billion $1.91 billion 20.80
Stanley Black & Decker Competitors $2.20 billion $345.93 million 10.63

Stanley Black & Decker has higher revenue and earnings than its competitors. Stanley Black & Decker is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Stanley Black & Decker pays out 31.8% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. Stanley Black & Decker has raised its dividend for 49 consecutive years. Stanley Black & Decker is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Stanley Black & Decker and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stanley Black & Decker 9.79% 15.41% 5.76%
Stanley Black & Decker Competitors 3.00% 6.64% 4.75%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Stanley Black & Decker and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stanley Black & Decker 0 3 13 0 2.81
Stanley Black & Decker Competitors 292 1668 1773 19 2.40

Stanley Black & Decker presently has a consensus price target of $165.87, indicating a potential upside of 0.70%. As a group, “Industrial Machinery & Equipment” companies have a potential downside of 0.38%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, equities analysts clearly believe Stanley Black & Decker is more favorable than its competitors.

Risk & Volatility

Stanley Black & Decker has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Stanley Black & Decker’s competitors have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Summary

Stanley Black & Decker beats its competitors on 12 of the 15 factors compared.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc. is a global provider of hand tools, power tools and related accessories, mechanical access solutions, such as automatic doors and commercial locking systems, electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications. The Company’s segments include Tools & Storage, Security and Industrial. Its Tools & Storage segment consists of the Power Tools and Hand Tools, Accessories and Storage businesses. Its Security segment consists of the Convergent Security Solutions and Mechanical Access Solutions businesses. Its Industrial segment consists of the Engineered Fastening and Infrastructure businesses. It offers brands, such as SIDCHROME, AeroScout, DEWALT, Newell Tools and Craftsman, Irwin, Lenox, Craftsman, BLACK+DECKER, SONITROL, Warren, GRIPCO, Porter-Cable, BOSTITCH and WanderGuard.

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