Crane (NYSE: CR) and Stanley Black & Decker (NYSE:SWK) are both mid-cap multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Risk & Volatility
Crane has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Institutional & Insider Ownership
68.4% of Crane shares are owned by institutional investors. Comparatively, 84.1% of Stanley Black & Decker shares are owned by institutional investors. 3.1% of Crane shares are owned by company insiders. Comparatively, 1.2% of Stanley Black & Decker shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.4%. Crane pays out 59.2% 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. Stanley Black & Decker has raised its dividend for 50 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings for Crane and Stanley Black & Decker, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||2||14||0||2.88|
Crane currently has a consensus target price of $97.00, indicating a potential upside of 4.89%. Stanley Black & Decker has a consensus target price of $169.93, indicating a potential downside of 3.03%. Given Crane’s higher possible upside, equities research analysts plainly believe Crane is more favorable than Stanley Black & Decker.
This table compares Crane and Stanley Black & Decker’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%|
Valuation & Earnings
This table compares Crane and Stanley Black & Decker’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crane||$2.75 billion||2.00||$122.80 million||$2.23||41.47|
|Stanley Black & Decker||$11.41 billion||2.36||$965.30 million||$7.92||22.13|
Stanley Black & Decker has higher revenue and earnings than Crane. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Crane, indicating that it is currently the more affordable of the two stocks.
Stanley Black & Decker beats Crane on 11 of the 17 factors compared between the two stocks.
Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.
About Stanley Black & Decker
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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