Head to Head Review: Actuant Corporation (ATU) vs. Stanley Black & Decker (SWK)
Actuant Corporation (NYSE: ATU) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Valuation and Earnings
This table compares Actuant Corporation and Stanley Black & Decker’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Actuant Corporation||$1.10 billion||1.34||$135.13 million||$0.82||30.06|
|Stanley Black & Decker||$11.84 billion||1.90||$1.91 billion||$7.80||18.85|
Stanley Black & Decker has higher revenue and earnings than Actuant Corporation. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Actuant Corporation, indicating that it is currently the more affordable of the two stocks.
Actuant Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.7%. Actuant Corporation pays out 4.9% of its earnings in the form of a dividend. Stanley Black & Decker pays out 32.3% 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 Corporation has raised its dividend for 49 consecutive years.
This table compares Actuant Corporation and Stanley Black & Decker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Black & Decker||9.92%||15.36%||5.81%|
Risk and Volatility
Actuant Corporation has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Actuant Corporation and Stanley Black & Decker, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||3||10||0||2.77|
Actuant Corporation currently has a consensus price target of $26.25, suggesting a potential upside of 6.49%. Stanley Black & Decker has a consensus price target of $152.33, suggesting a potential upside of 3.59%. Given Actuant Corporation’s higher possible upside, equities research analysts plainly believe Actuant Corporation is more favorable than Stanley Black & Decker.
Institutional & Insider Ownership
83.7% of Stanley Black & Decker shares are owned by institutional investors. 4.0% of Actuant Corporation shares are owned by insiders. Comparatively, 1.2% of Stanley Black & Decker 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.
Stanley Black & Decker beats Actuant Corporation on 11 of the 17 factors compared between the two stocks.
Actuant Corporation 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.
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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