Stanley Black & Decker (NYSE:SWK) and SiteOne Landscape Supply (NYSE:SITE) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Stanley Black & Decker and SiteOne Landscape Supply, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Stanley Black & Decker | 1 | 4 | 10 | 0 | 2.60 |
| SiteOne Landscape Supply | 2 | 3 | 4 | 0 | 2.22 |
Stanley Black & Decker currently has a consensus price target of $180.7857, suggesting a potential upside of 3.18%. SiteOne Landscape Supply has a consensus price target of $123.2857, suggesting a potential downside of 30.30%. Given Stanley Black & Decker's stronger consensus rating and higher probable upside, analysts clearly believe Stanley Black & Decker is more favorable than SiteOne Landscape Supply.
Earnings and Valuation
This table compares Stanley Black & Decker and SiteOne Landscape Supply's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Stanley Black & Decker | $14.44 billion | 1.94 | $955.80 million | $8.40 | 20.86 |
| SiteOne Landscape Supply | $2.36 billion | 3.32 | $77.70 million | $1.82 | 97.18 |
Stanley Black & Decker has higher revenue and earnings than SiteOne Landscape Supply. Stanley Black & Decker is trading at a lower price-to-earnings ratio than SiteOne Landscape Supply, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stanley Black & Decker and SiteOne Landscape Supply's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Stanley Black & Decker | 6.98% | 15.05% | 5.46% |
| SiteOne Landscape Supply | 4.38% | 22.35% | 6.75% |
Risk & Volatility
Stanley Black & Decker has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
85.4% of Stanley Black & Decker shares are held by institutional investors. 1.0% of Stanley Black & Decker shares are held by insiders. Comparatively, 3.5% of SiteOne Landscape Supply shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Stanley Black & Decker beats SiteOne Landscape Supply on 9 of the 14 factors compared between the two stocks.
