Head to Head Comparison: Stanley Black & Decker (NYSE:SWK) versus The Berkeley Group (OTCMKTS:BKGFF)

Stanley Black & Decker (NYSE:SWK) and The Berkeley Group (OTCMKTS:BKGFF) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Stanley Black & Decker and The Berkeley Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stanley Black & Decker	4.07%	8.78%	3.73%
The Berkeley Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Stanley Black & Decker and The Berkeley Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stanley Black & Decker	$15.13 billion	1.00	$401.90 million	$4.10	24.37
The Berkeley Group	N/A	N/A	N/A	$2.62	19.37

Stanley Black & Decker has higher revenue and earnings than The Berkeley Group. The Berkeley Group 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.

Institutional & Insider Ownership

87.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 45.9% of The Berkeley Group shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Stanley Black & Decker pays an annual dividend of $3.32 per share and has a dividend yield of 3.3%. The Berkeley Group pays an annual dividend of $1.80 per share and has a dividend yield of 3.6%. Stanley Black & Decker pays out 81.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Berkeley Group pays out 68.8% of its earnings in the form of a dividend. Stanley Black & Decker has raised its dividend for 58 consecutive years. The Berkeley Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for Stanley Black & Decker and The Berkeley Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Black & Decker	1	6	3	0	2.20
The Berkeley Group	0	0	0	0	0.00

Stanley Black & Decker currently has a consensus target price of $92.25, indicating a potential downside of 7.67%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, equities analysts clearly believe Stanley Black & Decker is more favorable than The Berkeley Group.

Summary

Stanley Black & Decker beats The Berkeley Group on 12 of the 14 factors compared between the two stocks.

About Stanley Black & Decker

Stanley Black & Decker, Inc. engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil and gas, infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the Tools and Outdoor and Industrial segments. The Tools and Outdoor segment refers to power tools, hand tools, accessories and storage, and outdoor power equipment product lines. The Industrial segment includes the engineered fastening and infrastructure businesses. The company was founded by Frederick T. Stanley in 1843 and is headquartered in New Britain, CT.

About The Berkeley Group

The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development and ancillary activities in the United Kingdom. The company is involved in land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names. The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.