Stanley Black & Decker (NYSE:SWK) and TriMas (NASDAQ:TRS) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Risk & Volatility
Stanley Black & Decker has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, TriMas has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Stanley Black & Decker and TriMas, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Stanley Black & Decker | 0 | 4 | 9 | 0 | 2.69 |
TriMas | 0 | 0 | 0 | 0 | N/A |
Stanley Black & Decker presently has a consensus price target of $189.3077, indicating a potential downside of 7.27%. Given Stanley Black & Decker's higher probable upside, equities analysts clearly believe Stanley Black & Decker is more favorable than TriMas.
Institutional & Insider Ownership
85.4% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 97.1% of TriMas shares are held by institutional investors. 1.0% of Stanley Black & Decker shares are held by insiders. Comparatively, 1.3% of TriMas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Stanley Black & Decker and TriMas' 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% |
TriMas | -8.64% | 10.24% | 5.56% |
Valuation and Earnings
This table compares Stanley Black & Decker and TriMas' 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 | 2.27 | $955.80 million | $8.40 | 24.30 |
TriMas | $723.53 million | 1.86 | $98.62 million | $1.45 | 21.46 |
Stanley Black & Decker has higher revenue and earnings than TriMas. TriMas 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.
Summary
Stanley Black & Decker beats TriMas on 10 of the 13 factors compared between the two stocks.