Contrasting Stanley Black & Decker (SWK) & Crane (CR)
Stanley Black & Decker (NYSE: SWK) and Crane (NYSE:CR) are both mid-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Stanley Black & Decker pays out 31.8% of its earnings in the form of a dividend. Crane pays out 59.2% 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. Crane has increased its dividend for 50 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings and target prices for Stanley Black & Decker and Crane, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||2||14||0||2.88|
Stanley Black & Decker presently has a consensus price target of $169.93, indicating a potential downside of 2.21%. Crane has a consensus price target of $97.00, indicating a potential upside of 4.04%. Given Crane’s higher probable upside, analysts plainly believe Crane is more favorable than Stanley Black & Decker.
Risk and Volatility
Stanley Black & Decker has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Crane has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
This table compares Stanley Black & Decker and Crane’s 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%|
Earnings & Valuation
This table compares Stanley Black & Decker and Crane’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stanley Black & Decker||$11.41 billion||2.34||$965.30 million||$7.92||21.94|
|Crane||$2.75 billion||2.01||$122.80 million||$2.23||41.81|
Stanley Black & Decker has higher revenue and earnings than Crane. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Crane, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
84.1% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 68.3% of Crane shares are owned by institutional investors. 1.2% of Stanley Black & Decker shares are owned by insiders. Comparatively, 3.1% of Crane shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Stanley Black & Decker beats Crane 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.
Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.
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