Financial Analysis: Stanley Black & Decker (SWK) and Its Competitors
Stanley Black & Decker (NYSE: SWK) is one of 57 public companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its peers? We will compare Stanley Black & Decker to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Volatility and Risk
Stanley Black & Decker has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Stanley Black & Decker’s peers have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
83.6% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 80.1% of shares of all “Industrial Machinery & Equipment” companies are held by institutional investors. 1.2% of Stanley Black & Decker shares are held by company insiders. Comparatively, 5.3% of shares of all “Industrial Machinery & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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 35.9% 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 peers, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and target prices for Stanley Black & Decker and its peers, 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||1684||1794||19||2.41|
Stanley Black & Decker currently has a consensus price target of $167.73, suggesting a potential upside of 2.82%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 2.09%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Stanley Black & Decker is more favorable than its peers.
Valuation & Earnings
This table compares Stanley Black & Decker and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Stanley Black & Decker||$11.41 billion||$965.30 million||20.60|
|Stanley Black & Decker Competitors||$3.33 billion||$236.61 million||0.37|
Stanley Black & Decker has higher revenue and earnings than its peers. Stanley Black & Decker is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares Stanley Black & Decker and its peers’ 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||3.02%||6.59%||4.74%|
Stanley Black & Decker beats its peers on 12 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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