Stanley Black & Decker (SWK) and CLARCOR (NYSE:CLC) Head-To-Head Contrast

CLARCOR (NYSE: CLC) and Stanley Black & Decker (NYSE:SWK) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CLARCOR and Stanley Black & Decker, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CLARCOR 0 0 0 0 N/A
Stanley Black & Decker 0 2 14 0 2.88

Stanley Black & Decker has a consensus target price of $169.93, indicating a potential downside of 2.01%. Given Stanley Black & Decker’s higher probable upside, analysts clearly believe Stanley Black & Decker is more favorable than CLARCOR.

Valuation & Earnings

This table compares CLARCOR and Stanley Black & Decker’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CLARCOR N/A N/A N/A $2.84 29.23
Stanley Black & Decker $11.41 billion 2.33 $965.30 million $7.92 21.90

Stanley Black & Decker has higher revenue and earnings than CLARCOR. Stanley Black & Decker is trading at a lower price-to-earnings ratio than CLARCOR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CLARCOR and Stanley Black & Decker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CLARCOR 7.71% 10.16% 6.66%
Stanley Black & Decker 9.79% 15.41% 5.76%

Dividends

CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.5%. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Stanley Black & Decker pays out 31.8% 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. CLARCOR has increased its dividend for 53 consecutive years and Stanley Black & Decker has increased its dividend for 50 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

86.9% of CLARCOR shares are owned by institutional investors. Comparatively, 84.0% of Stanley Black & Decker shares are owned by institutional investors. 3.0% of CLARCOR shares are owned by insiders. Comparatively, 1.2% of Stanley Black & Decker shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Stanley Black & Decker beats CLARCOR on 8 of the 13 factors compared between the two stocks.

CLARCOR Company Profile

CLARCOR Inc. is engaged in providing filtration products, filtration systems and services, and consumer and industrial packaging products. The Company’s segments are Engine/Mobile Filtration and Industrial/Environmental Filtration. Its Engine/Mobile Filtration segment manufactures and sells filtration products for on-road and off-road mobile and stationary applications. Its Industrial/Environmental Filtration segment manufactures and sells filtration products used in industrial and commercial processes, and in buildings and infrastructures of various types. Its liquid process filtration products include specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment and water recycling; bilge water separators, and sand control filters for oil and gas drilling.

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.

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