Stanley Black & Decker (SWK) versus Its Peers Critical Contrast

Stanley Black & Decker (NYSE:SWK) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it compare to its rivals? We will compare Stanley Black & Decker to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

87.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Stanley Black & Decker and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Black & Decker	1	6	4	0	2.27
Stanley Black & Decker Competitors	1799	7398	8143	315	2.40

Stanley Black & Decker currently has a consensus target price of $94.11, suggesting a potential downside of 6.54%. As a group, “Household Durables” companies have a potential upside of 52.18%. Given Stanley Black & Decker’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Stanley Black & Decker has less favorable growth aspects than its rivals.

Risk & Volatility

Stanley Black & Decker has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Stanley Black & Decker’s rivals have a beta of 1.76, meaning that their average stock price is 76% more volatile than the S&P 500.

Dividends

Stanley Black & Decker pays an annual dividend of $3.36 per share and has a dividend yield of 3.3%. Stanley Black & Decker pays out 82.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Household Durables” companies pay a dividend yield of 4.3% and pay out 33.1% of their earnings in the form of a dividend. Stanley Black & Decker has increased its dividend for 58 consecutive years. Stanley Black & Decker lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Stanley Black & Decker and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stanley Black & Decker	$15.25 billion	$401.90 million	24.56
Stanley Black & Decker Competitors	$127.74 billion	$320.74 million	8.33

Stanley Black & Decker’s rivals have higher revenue, but lower earnings than Stanley Black & Decker. Stanley Black & Decker is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Stanley Black & Decker and its rivals’ 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%
Stanley Black & Decker Competitors	-2.65%	-17.06%	1.20%

Summary

Stanley Black & Decker rivals beat Stanley Black & Decker on 9 of the 15 factors compared.

Stanley Black & Decker Company Profile

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.