Snap-on (SNA) vs. Eastern (EML) Head-To-Head Survey

Snap-on (NYSE:SNA) and Eastern (NASDAQ:EML) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Snap-on and Eastern, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap-on 0 1 3 0 2.75
Eastern 0 0 0 0 N/A

Snap-on presently has a consensus price target of $192.25, indicating a potential upside of 15.65%. Given Snap-on’s higher possible upside, research analysts clearly believe Snap-on is more favorable than Eastern.

Institutional and Insider Ownership

65.4% of Eastern shares are owned by institutional investors. 4.0% of Snap-on shares are owned by company insiders. Comparatively, 13.7% of Eastern shares are owned 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 Snap-on and Eastern’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Snap-on $3.69 billion 2.53 $557.70 million $10.12 16.43
Eastern $204.24 million 0.84 $5.04 million N/A N/A

Snap-on has higher revenue and earnings than Eastern.

Dividends

Snap-on pays an annual dividend of $3.80 per share and has a dividend yield of 2.3%. Eastern pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Snap-on pays out 37.5% of its earnings in the form of a dividend. Snap-on has raised its dividend for 8 consecutive years. Snap-on is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Snap-on has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Eastern has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Profitability

This table compares Snap-on and Eastern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap-on 16.86% 21.35% 12.46%
Eastern 4.30% 13.72% 7.01%

Summary

Snap-on beats Eastern on 12 of the 15 factors compared between the two stocks.

Snap-on Company Profile

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. The company operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. It offers hand tools, including wrenches, sockets, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other products; power tools, such as cordless, pneumatic, hydraulic, and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. The company also provides handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics. In addition, it offers solutions for the service of vehicles and industrial equipment, such as wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane systems, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists. Further, the company provides financing programs to facilitate the sales of its products and support its franchise business. It serves aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education industries, as well as vehicle dealerships and repair centers. Snap-on Incorporated was founded in 1920 and is headquartered in Kenosha, Wisconsin.

Eastern Company Profile

The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally. The company's Industrial Hardware segment offers passenger restraint and vehicular locks, latches, hinges, mirrors, mirror-cameras, light-weight sleeper boxes, and truck bodies for tractor-trailer trucks, specialty commercial vehicles, recreational vehicles, fire and rescue vehicles, school buses, military vehicles, and other vehicles. This segment also provides fasteners and other closure devices. The company's Security Products segment offers e engineered and standard closing and locking systems, including vehicular accessory locks, cabinet locks, cam locks, electric switch locks, tubular key locks, and combination padlocks under the SESAMEE, PRESTOLOCK and SEARCHALERT names. Its products also include timers, drop meters, coin chutes, money boxes, meter cases, smart cards, value transfer stations, smart card readers, card management software, and access control units. In addition, this segment provides coin acceptors and other coin security products for the commercial laundry markets; and circuit boards and other electronic assemblies to various industries, including measurement systems, semiconductor equipment manufacturing, and industrial controls, medical, and military products. The company's Metal Products segment offers expansion shells to support the roofs of underground mines; and specialty malleable and ductile iron castings. This segment's products include mine roof support anchors, couplers for railroad braking systems, support anchoring for construction, and couplers/fittings for utility industries. The company sells its products to original equipment manufacturers, distributors, route operators, and locksmiths. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.

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