Mueller Water Products (NYSE: MWA) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares Mueller Water Products and Stanley Black & Decker’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mueller Water Products $826.00 million 2.40 $123.30 million $0.76 16.51
Stanley Black & Decker $11.41 billion 2.23 $965.30 million $7.92 20.97

Stanley Black & Decker has higher revenue and earnings than Mueller Water Products. Mueller Water Products is trading at a lower price-to-earnings ratio than Stanley Black & Decker, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mueller Water Products and Stanley Black & Decker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mueller Water Products 14.93% 15.43% 5.70%
Stanley Black & Decker 9.79% 15.41% 5.76%

Volatility and Risk

Mueller Water Products has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

84.3% of Mueller Water Products shares are held by institutional investors. Comparatively, 84.2% of Stanley Black & Decker shares are held by institutional investors. 4.3% of Mueller Water Products shares are held by company insiders. Comparatively, 1.2% of Stanley Black & Decker shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Mueller Water Products pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Mueller Water Products pays out 21.1% of its earnings in the form of a dividend. Stanley Black & Decker pays out 31.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mueller Water Products has increased its dividend for 2 consecutive years and Stanley Black & Decker has increased its dividend for 49 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Mueller Water Products and Stanley Black & Decker, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Water Products 0 2 6 0 2.75
Stanley Black & Decker 0 2 15 0 2.88

Mueller Water Products currently has a consensus price target of $13.75, suggesting a potential upside of 9.56%. Stanley Black & Decker has a consensus price target of $167.73, suggesting a potential upside of 1.01%. Given Mueller Water Products’ higher possible upside, equities research analysts clearly believe Mueller Water Products is more favorable than Stanley Black & Decker.

Summary

Mueller Water Products beats Stanley Black & Decker on 9 of the 17 factors compared between the two stocks.

Mueller Water Products Company Profile

Mueller Water Products, Inc. is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The Company operates through three segments: Mueller Co., Anvil and Mueller Technologies. The Mueller Co. segment manufactures valves for water and gas systems, and dry-barrel and wet-barrel fire hydrants. The Anvil segment manufactures and sources a range of products, including a range of fittings, couplings, hangers and related products. The Mueller Technologies segment offers metering systems, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. The Mueller Technologies segment includes Mueller Systems and Echologics businesses. The Company offers a range of water infrastructure, flow control and piping component system products and services in the United States and Canada.

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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