Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and Stanley Black & Decker (NYSE:SWK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Profitability
This table compares Dorel Industries and Stanley Black & Decker’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorel Industries | -8.90% | N/A | -10.11% |
| Stanley Black & Decker | 5.53% | 10.22% | 4.41% |
Volatility & Risk
Dorel Industries has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Dorel Industries and Stanley Black & Decker, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
| Stanley Black & Decker | 1 | 7 | 5 | 0 | 2.31 |
Stanley Black & Decker has a consensus target price of $100.09, indicating a potential downside of 11.53%. Given Stanley Black & Decker’s stronger consensus rating and higher possible upside, analysts clearly believe Stanley Black & Decker is more favorable than Dorel Industries.
Earnings & Valuation
This table compares Dorel Industries and Stanley Black & Decker”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($2.81) | -0.35 |
| Stanley Black & Decker | $15.13 billion | 1.11 | $401.90 million | $5.59 | 20.24 |
Stanley Black & Decker has higher revenue and earnings than Dorel Industries. Dorel Industries 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.
Insider and Institutional Ownership
87.8% of Stanley Black & Decker shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by insiders. Comparatively, 0.7% of Stanley Black & Decker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Stanley Black & Decker beats Dorel Industries on 12 of the 13 factors compared between the two stocks.
About Dorel Industries
Dorel Industries Inc. was a Canadian consumer-products company headquartered in Montreal, Quebec. Founded in 1962, the company developed and marketed products through three principal business areas: juvenile products, home furnishings and recreational products. Its brands and operations served consumers through major retailers, e-commerce channels and specialty dealers in North America, Europe, Latin America and other international markets. Dorel Juvenile produced car seats, strollers, playards, high chairs and other infant and child-care products.
About Stanley Black & Decker
Stanley Black & Decker is a global manufacturer of tools, outdoor equipment and engineered fastening products. Its portfolio includes power and hand tools, tool storage, accessories, and outdoor power equipment sold under brands such as DEWALT, CRAFTSMAN, STANLEY and BLACK+DECKER. The company also supplies engineered fastening solutions and related products to customers in industries such as construction, automotive and manufacturing. Its products serve professional users, businesses and consumers in markets around the world.
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