Comparing Stanley Black & Decker (SWK) & Its Peers

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 similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Dividends

Stanley Black & Decker pays an annual dividend of $3.36 per share and has a dividend yield of 3.2%. 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 4.2% and pay out 32.5% of their earnings in the form of a dividend. Stanley Black & Decker has raised 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.

Volatility & Risk

Stanley Black & Decker has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Stanley Black & Decker’s peers have a beta of 1.77, indicating that their average stock price is 77% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Stanley Black & Decker	$15.13 billion	$401.90 million	25.22
Stanley Black & Decker Competitors	$5.33 billion	$313.99 million	8.98

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.

Insider & Institutional Ownership

87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are held 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 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%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Stanley Black & Decker and its peers, as reported 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	1804	7416	8148	316	2.39

Stanley Black & Decker presently has a consensus price target of $94.11, indicating a potential downside of 9.00%. As a group, “Household Durables” companies have a potential upside of 47.11%. Given Stanley Black & Decker’s peers stronger consensus rating and higher probable upside, analysts plainly believe Stanley Black & Decker has less favorable growth aspects than its peers.

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.