Stanley Black & Decker (NYSE:SWK – Get Free Report) and Mohawk Industries (NYSE:MHK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Valuation and Earnings
This table compares Stanley Black & Decker and Mohawk Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stanley Black & Decker | $15.13 billion | 1.03 | $401.90 million | $4.10 | 25.09 |
| Mohawk Industries | $10.79 billion | 0.86 | $369.90 million | $7.55 | 18.08 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Stanley Black & Decker and Mohawk Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stanley Black & Decker | 1 | 6 | 4 | 0 | 2.27 |
| Mohawk Industries | 0 | 12 | 3 | 1 | 2.31 |
Stanley Black & Decker currently has a consensus target price of $91.56, suggesting a potential downside of 11.00%. Mohawk Industries has a consensus target price of $130.50, suggesting a potential downside of 4.37%. Given Mohawk Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Mohawk Industries is more favorable than Stanley Black & Decker.
Profitability
This table compares Stanley Black & Decker and Mohawk Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stanley Black & Decker | 4.07% | 8.78% | 3.73% |
| Mohawk Industries | 4.15% | 7.50% | 4.60% |
Insider and Institutional Ownership
87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 79.0% of Mohawk Industries shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by insiders. Comparatively, 17.9% of Mohawk Industries shares are held by 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.
Volatility & Risk
Stanley Black & Decker has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Mohawk Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Summary
Mohawk Industries beats Stanley Black & Decker on 8 of the 15 factors compared between the two stocks.
About Stanley Black & Decker
Stanley Black & Decker, Inc. engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil and gas, infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the Tools and Outdoor and Industrial segments. The Tools and Outdoor segment refers to power tools, hand tools, accessories and storage, and outdoor power equipment product lines. The Industrial segment includes the engineered fastening and infrastructure businesses. The company was founded by Frederick T. Stanley in 1843 and is headquartered in New Britain, CT.
About Mohawk Industries
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.
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