Reviewing Stanley Black & Decker (SWK) & Its Competitors

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

Profitability

This table compares Stanley Black & Decker and its peers’ 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	-2.75%	-17.14%	1.17%

Valuation & Earnings

This table compares Stanley Black & Decker and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stanley Black & Decker	$15.13 billion	$401.90 million	29.31
Stanley Black & Decker Competitors	$5.27 billion	$310.98 million	9.51

Stanley Black & Decker has higher revenue and earnings than its peers. Stanley Black & Decker is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and target prices for Stanley Black & Decker and its peers, as provided 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	1810	7430	8154	316	2.39

Stanley Black & Decker currently has a consensus target price of $94.11, suggesting a potential downside of 21.68%. As a group, “Household Durables” companies have a potential upside of 39.69%. Given Stanley Black & Decker’s peers stronger consensus rating and higher possible upside, analysts plainly believe Stanley Black & Decker has less favorable growth aspects than its peers.

Institutional and Insider 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 company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies 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.

Volatility and Risk

Stanley Black & Decker has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Stanley Black & Decker’s peers have a beta of 1.77, suggesting that their average share price is 77% 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 2.8%. 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 4.0% and pay out 32.5% 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Stanley Black & Decker peers beat Stanley Black & Decker on 8 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.