John Bean Technologies (NYSE:JBT) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for John Bean Technologies and Stanley Black & Decker, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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John Bean Technologies | 0 | 1 | 3 | 0 | 2.75 |
Stanley Black & Decker | 0 | 4 | 9 | 0 | 2.69 |
John Bean Technologies currently has a consensus price target of $149.3333, suggesting a potential upside of 8.89%. Stanley Black & Decker has a consensus price target of $189.3077, suggesting a potential downside of 7.27%. Given John Bean Technologies' stronger consensus rating and higher probable upside, equities analysts plainly believe John Bean Technologies is more favorable than Stanley Black & Decker.
Valuation and Earnings
This table compares John Bean Technologies and Stanley Black & Decker's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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John Bean Technologies | $1.95 billion | 2.24 | $129 million | $4.96 | 27.65 |
Stanley Black & Decker | $14.44 billion | 2.27 | $955.80 million | $8.40 | 24.30 |
Stanley Black & Decker has higher revenue and earnings than John Bean Technologies. Stanley Black & Decker is trading at a lower price-to-earnings ratio than John Bean Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
85.4% of Stanley Black & Decker shares are owned by institutional investors. 2.2% of John Bean Technologies shares are owned by company insiders. Comparatively, 1.0% of Stanley Black & Decker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
John Bean Technologies has a beta of 1.58, meaning that its stock price is 58% 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.
Profitability
This table compares John Bean Technologies and Stanley Black & Decker's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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John Bean Technologies | 6.59% | 24.17% | 7.64% |
Stanley Black & Decker | 6.98% | 15.05% | 5.46% |
Dividends
John Bean Technologies pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Stanley Black & Decker pays an annual dividend of $2.80 per share and has a dividend yield of 1.4%. John Bean Technologies pays out 8.1% of its earnings in the form of a dividend. Stanley Black & Decker pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Bean Technologies has increased its dividend for 1 consecutive years and Stanley Black & Decker has increased its dividend for 54 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Stanley Black & Decker beats John Bean Technologies on 9 of the 17 factors compared between the two stocks.