Greenbrier Companies (NYSE:GBX) and Snap-On (NYSE:SNA) Head to Head Contrast

Snap-On (NYSE:SNA) and Greenbrier Companies (NYSE:GBX) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Profitability

This table compares Snap-On and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap-On	20.82%	16.77%	11.82%
Greenbrier Companies	3.21%	4.85%	1.90%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Snap-On and Greenbrier Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap-On	0	1	4	0	2.80
Greenbrier Companies	3	2	0	0	1.40

Snap-On presently has a consensus price target of $434.00, suggesting a potential upside of 17.83%. Greenbrier Companies has a consensus price target of $40.33, suggesting a potential downside of 3.68%. Given Snap-On’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Snap-On is more favorable than Greenbrier Companies.

Risk and Volatility

Snap-On has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Valuation and Earnings

This table compares Snap-On and Greenbrier Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap-On	$5.27 billion	3.61	$1.02 billion	$19.23	19.15
Greenbrier Companies	$2.46 billion	0.53	$79.00 million	$2.48	16.89

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

Insider and Institutional Ownership

84.9% of Snap-On shares are owned by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are owned by institutional investors. 3.8% of Snap-On shares are owned by company insiders. Comparatively, 1.7% of Greenbrier Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Snap-On pays an annual dividend of $11.00 per share and has a dividend yield of 3.0%. Greenbrier Companies pays an annual dividend of $1.36 per share and has a dividend yield of 3.2%. Snap-On pays out 57.2% of its earnings in the form of a dividend. Greenbrier Companies pays out 54.8% 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. Snap-On has raised its dividend for 15 consecutive years and Greenbrier Companies has raised its dividend for 3 consecutive years. Greenbrier Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Snap-On beats Greenbrier Companies on 13 of the 17 factors compared between the two stocks.

About Snap-On

Snap-on Incorporated develops, manufactures and markets tools, equipment, diagnostics and information systems for professional users. Its offerings include hand and power tools, tool storage, vehicle diagnostic equipment, shop equipment, repair information and software, and related products and services. The company serves customers in vehicle repair and other industries, including aviation, aerospace, agriculture, construction and manufacturing. Its products and services reach customers in the United States and international markets.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures and markets freight railcars and related equipment. Its products serve a range of cargo needs, including transporting agricultural goods, energy products, construction materials and other freight. The company also provides railcar leasing and fleet management, as well as maintenance, repair, refurbishment and parts services. Through these activities, Greenbrier supports rail transportation customers across North America and international markets.