Analyzing Green Brick Partners (NASDAQ:GRBK) and Stanley Black & Decker (NYSE:SWK)

Green Brick Partners (NASDAQ:GRBK) and Stanley Black & Decker (NYSE:SWK) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Insider & Institutional Ownership

78.2% of Green Brick Partners shares are held by institutional investors. Comparatively, 87.8% of Stanley Black & Decker shares are held by institutional investors. 30.3% of Green Brick Partners shares are held by insiders. Comparatively, 0.7% of Stanley Black & Decker shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Green Brick Partners and Stanley Black & Decker”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$1.98 billion	1.30	$284.63 million	$6.22	9.79
Stanley Black & Decker	$15.22 billion	1.11	$401.90 million	$5.59	20.24

Stanley Black & Decker has higher revenue and earnings than Green Brick Partners. Green Brick Partners 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.

Volatility & Risk

Green Brick Partners has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Green Brick Partners and Stanley Black & Decker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	3	0	0	2.00
Stanley Black & Decker	1	7	5	0	2.31

Stanley Black & Decker has a consensus target price of $100.09, suggesting a potential downside of 11.53%. Given Stanley Black & Decker’s stronger consensus rating and higher possible upside, analysts plainly believe Stanley Black & Decker is more favorable than Green Brick Partners.

Profitability

This table compares Green Brick Partners and Stanley Black & Decker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Brick Partners	17.70%	25.35%	17.29%
Stanley Black & Decker	5.53%	10.22%	4.41%

About Green Brick Partners

Green Brick Partners, Inc. is a homebuilding and land development company that operates through a network of regional builders and real estate businesses. Its activities include acquiring and developing land, constructing homes, and marketing them to homebuyers. The company serves markets in Texas, Georgia, Colorado and Florida. Its homebuilding brands include Trophy Signature Homes, CB JENI Homes, Normandy Homes, Southgate Homes, The Providence Group, Challenger Homes and GHO Homes. Green Brick traces its roots to 2006 and became a publicly traded company in 2014.

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.