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

Earnings and 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 20.53
Stanley Black & Decker Competitors $2.20 billion $345.93 million 24.85

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Stanley Black & Decker and its competitors, as provided 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 290 1656 1763 19 2.41

Stanley Black & Decker currently has a consensus target price of $159.71, indicating a potential downside of 0.25%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 0.91%. Given Stanley Black & Decker’s competitors higher possible upside, analysts clearly believe Stanley Black & Decker has less favorable growth aspects than its competitors.

Dividends

Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. Stanley Black & Decker pays out 32.3% 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 36.4% of their earnings in the form of a dividend. Stanley Black & Decker has increased 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.

Risk & Volatility

Stanley Black & Decker has a beta of 1.06, suggesting 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, suggesting that their average stock price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

83.6% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 80.2% of shares of all “Industrial Machinery & Equipment” companies are held by institutional investors. 1.2% of Stanley Black & Decker shares are held by insiders. Comparatively, 5.3% of shares of all “Industrial Machinery & Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 8.58% 16.16% 5.86%
Stanley Black & Decker Competitors 1.22% 6.49% 4.47%

Summary

Stanley Black & Decker beats its competitors on 10 of the 15 factors compared.

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.

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