Snap-On (NYSE: SNA) is one of 56 publicly-traded companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its peers? We will compare Snap-On to similar businesses based off the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Snap-On and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap-On 0 2 5 0 2.71
Snap-On Competitors 389 1894 1905 36 2.38

Snap-On currently has a consensus price target of $197.00, suggesting a potential upside of 34.01%. All “Industrial Machinery & Equipment” companies have a potential upside of 6.42%. Given Snap-On’s stronger consensus rating and higher probable upside, equities analysts plainly believe Snap-On is more favorable than its peers.

Profitability

This table compares Snap-On and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap-On 16.22% 20.90% 11.89%
Snap-On Competitors 1.56% 6.75% 4.65%

Risk and Volatility

Snap-On has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Snap-On’s peers have a beta of 1.21, suggesting that their average stock price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Snap-On and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Snap-On $3.83 billion $971.00 million 15.19
Snap-On Competitors $2.27 billion $360.80 million 22.40

Snap-On has higher revenue and earnings than its peers. Snap-On is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Dividends

Snap-On pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Snap-On pays out 29.3% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.6% and pay out 35.6% of their earnings in the form of a dividend. Snap-On has increased its dividend for 7 consecutive years. Snap-On is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

93.8% of Snap-On shares are owned by institutional investors. Comparatively, 79.2% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 3.7% of Snap-On 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Snap-On beats its peers on 11 of the 15 factors compared.

Snap-On Company Profile

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

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