NN (NASDAQ:NNBR) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Profitability
This table compares NN and Stanley Black & Decker's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
NN | -39.55% | 2.75% | 0.29% |
Stanley Black & Decker | 6.98% | 15.05% | 5.46% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for NN and Stanley Black & Decker, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
NN | 0 | 1 | 0 | 0 | 2.00 |
Stanley Black & Decker | 0 | 4 | 8 | 0 | 2.67 |
Stanley Black & Decker has a consensus target price of $195.00, indicating a potential downside of 3.72%. Given Stanley Black & Decker's stronger consensus rating and higher possible upside, analysts plainly believe Stanley Black & Decker is more favorable than NN.
Earnings & Valuation
This table compares NN 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 |
---|
NN | $847.45 million | 0.39 | $-46,740,000.00 | $0.83 | 9.41 |
Stanley Black & Decker | $14.44 billion | 2.26 | $955.80 million | $8.40 | 24.11 |
Stanley Black & Decker has higher revenue and earnings than NN. NN 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.
Insider and Institutional Ownership
79.3% of NN shares are held by institutional investors. Comparatively, 85.4% of Stanley Black & Decker shares are held by institutional investors. 3.5% of NN shares are held by insiders. Comparatively, 1.0% 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 stock is poised for long-term growth.
Risk and Volatility
NN has a beta of 3.35, meaning that its stock price is 235% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Summary
Stanley Black & Decker beats NN on 12 of the 14 factors compared between the two stocks.