Critical Survey: Stanley Black & Decker (NYSE:SWK) & Techtronic Industries (OTCMKTS:TTNDY)

Techtronic Industries (OTCMKTS:TTNDY) and Stanley Black & Decker (NYSE:SWK) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Techtronic Industries and Stanley Black & Decker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Techtronic Industries	0	0	0	1	4.00
Stanley Black & Decker	1	4	5	0	2.40

Stanley Black & Decker has a consensus price target of $92.10, indicating a potential upside of 29.42%. Given Stanley Black & Decker’s higher probable upside, analysts clearly believe Stanley Black & Decker is more favorable than Techtronic Industries.

Volatility and Risk

Techtronic Industries has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Techtronic Industries and Stanley Black & Decker”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Techtronic Industries	$14.62 billion	1.41	$1.12 billion	N/A	N/A
Stanley Black & Decker	$15.37 billion	0.72	$286.30 million	$2.41	29.53

Techtronic Industries has higher earnings, but lower revenue than Stanley Black & Decker.

Insider & Institutional Ownership

0.0% of Techtronic Industries shares are owned by institutional investors. Comparatively, 87.8% of Stanley Black & Decker 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Techtronic Industries and Stanley Black & Decker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Techtronic Industries	N/A	N/A	N/A
Stanley Black & Decker	2.40%	7.85%	3.09%

Dividends

Techtronic Industries pays an annual dividend of $1.46 per share and has a dividend yield of 2.6%. Stanley Black & Decker pays an annual dividend of $3.28 per share and has a dividend yield of 4.6%. Stanley Black & Decker pays out 136.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stanley Black & Decker has increased its dividend for 58 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Stanley Black & Decker beats Techtronic Industries on 10 of the 16 factors compared between the two stocks.

About Techtronic Industries

Techtronic Industries Company Limited engages in the design, manufacture, and marketing of power tools, outdoor power equipment, and floorcare and cleaning products in the North America, Europe, and internationally. The company operates through Power Equipment, and Floorcare & Cleaning Segments. It offers power tools, power tool accessories, outdoor products, and outdoor product accessories under the MILWAUKEE, EMPIRE, AEG, RYOBI, HOMELITE, and HART brands, as well as to original equipment manufacturer (OEM) customers. The company also provides floorcare products and accessories under the HOOVER, DIRT DEVIL, VAX, and ORECK brands, as well as to OEM customers; and offers inspection services. It serves Do-It-Yourself /Consumer, professional, and industrial users in the home improvement, repair, maintenance, construction, and infrastructure industries. Techtronic Industries Company Limited was founded in 1985 and is based in Kwai Chung, Hong Kong.

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.