Stanley Black & Decker (NYSE:SWK) and Standex International (NYSE:SXI) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Profitability
This table compares Stanley Black & Decker and Standex International'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% |
| Standex International | 2.74% | 9.39% | 4.68% |
Earnings & Valuation
This table compares Stanley Black & Decker and Standex International's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Stanley Black & Decker | $14.44 billion | 2.27 | $955.80 million | $8.40 | 24.30 |
| Standex International | $604.53 million | 1.97 | $20.19 million | $3.49 | 27.66 |
Stanley Black & Decker has higher revenue and earnings than Standex International. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Standex International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Stanley Black & Decker and Standex International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Stanley Black & Decker | 0 | 4 | 9 | 0 | 2.69 |
| Standex International | 0 | 0 | 3 | 0 | 3.00 |
Stanley Black & Decker currently has a consensus target price of $189.3077, indicating a potential downside of 7.27%. Standex International has a consensus target price of $86.3333, indicating a potential downside of 10.55%. Given Stanley Black & Decker's higher probable upside, equities research analysts plainly believe Stanley Black & Decker is more favorable than Standex International.
Volatility and Risk
Stanley Black & Decker has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Standex International has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.
Dividends
Stanley Black & Decker pays an annual dividend of $2.80 per share and has a dividend yield of 1.4%. Standex International pays an annual dividend of $0.96 per share and has a dividend yield of 1.0%. Stanley Black & Decker pays out 33.3% of its earnings in the form of a dividend. Standex International pays out 27.5% 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. Stanley Black & Decker has raised its dividend for 54 consecutive years and Standex International has raised its dividend for 11 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
85.4% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 85.5% of Standex International shares are held by institutional investors. 1.0% of Stanley Black & Decker shares are held by company insiders. Comparatively, 2.3% of Standex International shares are held by company 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.
Summary
Stanley Black & Decker beats Standex International on 12 of the 17 factors compared between the two stocks.
