Comparing Snap-on (SNA) & Actuant (ATU)

Snap-on (NYSE: SNA) and Actuant (NYSE:ATU) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Dividends

Snap-on pays an annual dividend of $3.28 per share and has a dividend yield of 1.8%. Actuant pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Snap-on pays out 33.7% of its earnings in the form of a dividend. Actuant pays out -3.6% 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. Actuant has increased its dividend for 8 consecutive years.

Insider & Institutional Ownership

99.4% of Snap-on shares are owned by institutional investors. 3.7% of Snap-on shares are owned by insiders. Comparatively, 1.1% of Actuant shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Snap-on and Actuant, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap-on 0 2 7 0 2.78
Actuant 1 7 3 0 2.18

Snap-on presently has a consensus target price of $193.63, suggesting a potential upside of 5.69%. Actuant has a consensus target price of $24.38, suggesting a potential downside of 6.61%. Given Snap-on’s stronger consensus rating and higher possible upside, equities analysts plainly believe Snap-on is more favorable than Actuant.

Volatility & Risk

Snap-on has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Actuant has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares Snap-on and Actuant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap-on 15.95% 20.82% 11.72%
Actuant -5.89% 9.29% 3.32%

Valuation and Earnings

This table compares Snap-on and Actuant’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Snap-on $3.43 billion 3.04 $546.40 million $9.73 18.83
Actuant $1.10 billion 1.43 -$66.21 million ($1.11) -23.51

Snap-on has higher revenue and earnings than Actuant. Actuant is trading at a lower price-to-earnings ratio than Snap-on, indicating that it is currently the more affordable of the two stocks.

Summary

Snap-on beats Actuant on 14 of the 17 factors compared between the two stocks.

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.

Actuant Company Profile

Actuant Corporation designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company operates through three segments: Industrial, Energy and Engineered Solutions. The Company’s Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets. The Company’s Energy segment provides joint integrity products and services, customized offshore vessel mooring solutions, as well as rope and cable solutions to the global oil and gas, power generation and other energy markets. The Company’s Engineered Solutions segment provides engineered position and motion control systems to original equipment manufacturers (OEM) in various on and off-highway vehicle markets, as well as various other products to the industrial and agricultural markets.

Receive News & Ratings for Snap-on Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Snap-on and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply