Stanley Black & Decker (NYSE: SWK) and Barnes Group (NYSE:B) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Risk & Volatility
Stanley Black & Decker has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Barnes Group has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
84.2% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 86.0% of Barnes Group shares are held by institutional investors. 1.2% of Stanley Black & Decker shares are held by company insiders. Comparatively, 8.5% of Barnes Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Stanley Black & Decker and Barnes Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stanley Black & Decker||$11.41 billion||2.27||$965.30 million||$7.92||21.30|
|Barnes Group||$1.23 billion||2.83||$135.60 million||$2.84||22.86|
Stanley Black & Decker has higher revenue and earnings than Barnes Group. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Barnes Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Stanley Black & Decker and Barnes Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||2||15||0||2.88|
Stanley Black & Decker currently has a consensus target price of $167.73, indicating a potential downside of 0.59%. Barnes Group has a consensus target price of $65.60, indicating a potential upside of 1.05%. Given Barnes Group’s higher possible upside, analysts clearly believe Barnes Group is more favorable than Stanley Black & Decker.
This table compares Stanley Black & Decker and Barnes Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Black & Decker||9.79%||15.41%||5.76%|
Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Stanley Black & Decker pays out 31.8% of its earnings in the form of a dividend. Barnes Group pays out 19.7% 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 4 consecutive years and Barnes Group has raised its dividend for 49 consecutive years.
Barnes Group beats Stanley Black & Decker on 9 of the 17 factors compared between the two stocks.
Stanley Black & Decker Company Profile
Stanley Black & Decker, Inc. is a global provider of hand tools, power tools and related accessories, mechanical access solutions, such as automatic doors and commercial locking systems, electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications. The Company’s segments include Tools & Storage, Security and Industrial. Its Tools & Storage segment consists of the Power Tools and Hand Tools, Accessories and Storage businesses. Its Security segment consists of the Convergent Security Solutions and Mechanical Access Solutions businesses. Its Industrial segment consists of the Engineered Fastening and Infrastructure businesses. It offers brands, such as SIDCHROME, AeroScout, DEWALT, Newell Tools and Craftsman, Irwin, Lenox, Craftsman, BLACK+DECKER, SONITROL, Warren, GRIPCO, Porter-Cable, BOSTITCH and WanderGuard.
Barnes Group Company Profile
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
What are top analysts saying about Stanley Black & Decker Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Stanley Black & Decker Inc. and related companies.