Comparing Rexnord Corporation (RXN) & Stanley Black & Decker (SWK)
Stanley Black & Decker (NYSE: SWK) and Rexnord Corporation (NYSE:RXN) are both mid-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitabiliy, dividends and earnings.
Earnings & Valuation
This table compares Stanley Black & Decker and Rexnord Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stanley Black & Decker||$11.54 billion||1.94||$1.89 billion||$7.82||18.70|
|Rexnord Corporation||$1.92 billion||1.28||$320.70 million||$0.65||36.42|
Stanley Black & Decker has higher revenue and earnings than Rexnord Corporation. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Rexnord Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Stanley Black & Decker and Rexnord Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||4||10||0||2.71|
Stanley Black & Decker presently has a consensus price target of $152.40, indicating a potential upside of 4.21%. Rexnord Corporation has a consensus price target of $23.67, indicating a potential downside of 0.01%. Given Stanley Black & Decker’s higher probable upside, research analysts plainly believe Stanley Black & Decker is more favorable than Rexnord Corporation.
This table compares Stanley Black & Decker and Rexnord Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Black & Decker||10.13%||15.47%||5.91%|
Risk & Volatility
Stanley Black & Decker has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Rexnord Corporation has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Institutional & Insider Ownership
83.6% of Stanley Black & Decker shares are owned by institutional investors. 1.2% of Stanley Black & Decker shares are owned by company insiders. Comparatively, 3.5% of Rexnord Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Stanley Black & Decker pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Rexnord Corporation does not pay a dividend. Stanley Black & Decker pays out 29.7% of its earnings in the form of a dividend. Rexnord Corporation has raised its dividend for 49 consecutive years.
Stanley Black & Decker beats Rexnord Corporation on 10 of the 17 factors compared between the two stocks.
About Stanley Black & Decker
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.
About Rexnord Corporation
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
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