Stanley Black & Decker (SWK) & KLX (KLXIV) Critical Analysis
Stanley Black & Decker (NYSE: SWK) and KLX (NASDAQ:KLXIV) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
This table compares Stanley Black & Decker and KLX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Black & Decker||9.92%||15.36%||5.81%|
Insider & Institutional Ownership
83.7% of Stanley Black & Decker shares are owned by institutional investors. 1.2% of Stanley Black & Decker shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Stanley Black & Decker and KLX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||2||11||0||2.85|
Stanley Black & Decker currently has a consensus target price of $153.58, suggesting a potential downside of 1.23%. Given Stanley Black & Decker’s higher probable upside, analysts plainly believe Stanley Black & Decker is more favorable than KLX.
Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.6%. KLX does not pay a dividend. Stanley Black & Decker pays out 32.3% of its earnings in the form of a dividend. Stanley Black & Decker has raised its dividend for 49 consecutive years.
Valuation & Earnings
This table compares Stanley Black & Decker and KLX’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stanley Black & Decker||$11.84 billion||2.01||$1.91 billion||$7.80||19.93|
Stanley Black & Decker has higher revenue and earnings than KLX.
Stanley Black & Decker beats KLX on 10 of the 11 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.
KLX Company Profile
KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.
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