La-Z-Boy (NYSE:LZB – Get Free Report) and Stanley Black & Decker (NYSE:SWK – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Dividends
La-Z-Boy pays an annual dividend of $0.97 per share and has a dividend yield of 3.3%. Stanley Black & Decker pays an annual dividend of $3.36 per share and has a dividend yield of 3.8%. La-Z-Boy pays out 49.2% of its earnings in the form of a dividend. 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. La-Z-Boy has raised its dividend for 4 consecutive years and Stanley Black & Decker has raised 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for La-Z-Boy and Stanley Black & Decker, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La-Z-Boy | 1 | 1 | 3 | 0 | 2.40 |
| Stanley Black & Decker | 1 | 6 | 3 | 0 | 2.20 |
Institutional & Insider Ownership
99.6% of La-Z-Boy shares are owned by institutional investors. Comparatively, 87.8% of Stanley Black & Decker shares are owned by institutional investors. 3.1% of La-Z-Boy shares are owned by company insiders. Comparatively, 0.7% of Stanley Black & Decker shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
La-Z-Boy has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Profitability
This table compares La-Z-Boy and Stanley Black & Decker’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La-Z-Boy | 3.86% | 11.79% | 6.12% |
| Stanley Black & Decker | 4.07% | 8.78% | 3.73% |
Valuation and Earnings
This table compares La-Z-Boy and Stanley Black & Decker”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La-Z-Boy | $2.13 billion | 0.56 | $101.99 million | $1.97 | 15.08 |
| Stanley Black & Decker | $15.25 billion | 0.88 | $401.90 million | $4.10 | 21.68 |
Stanley Black & Decker has higher revenue and earnings than La-Z-Boy. La-Z-Boy 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.
About La-Z-Boy
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.
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.
Receive News & Ratings for La-Z-Boy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for La-Z-Boy and related companies with MarketBeat.com's FREE daily email newsletter.
