Stanley Black & Decker (NYSE:SWK) and RBC Bearings (NASDAQ:ROLL) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Volatility and Risk
Stanley Black & Decker has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, RBC Bearings has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares Stanley Black & Decker and RBC Bearings' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Stanley Black & Decker | $14.44 billion | 2.25 | $955.80 million | $8.40 | 24.04 |
RBC Bearings | $727.46 million | 6.84 | $126.04 million | $5.07 | 39.06 |
Stanley Black & Decker has higher revenue and earnings than RBC Bearings. Stanley Black & Decker is trading at a lower price-to-earnings ratio than RBC Bearings, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Stanley Black & Decker and RBC Bearings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Stanley Black & Decker | 0 | 4 | 9 | 0 | 2.69 |
RBC Bearings | 2 | 1 | 2 | 0 | 2.00 |
Stanley Black & Decker currently has a consensus target price of $189.3077, suggesting a potential downside of 6.24%. RBC Bearings has a consensus target price of $114.6667, suggesting a potential downside of 42.10%. Given Stanley Black & Decker's stronger consensus rating and higher possible upside, research analysts clearly believe Stanley Black & Decker is more favorable than RBC Bearings.
Profitability
This table compares Stanley Black & Decker and RBC Bearings' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Stanley Black & Decker | 6.98% | 15.05% | 5.46% |
RBC Bearings | 16.13% | 9.70% | 8.24% |
Insider and Institutional Ownership
85.4% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 96.5% of RBC Bearings shares are owned by institutional investors. 1.0% of Stanley Black & Decker shares are owned by insiders. Comparatively, 3.5% of RBC Bearings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Stanley Black & Decker beats RBC Bearings on 8 of the 14 factors compared between the two stocks.