Stanley Black & Decker (SWK) vs. Q.E.P. (QEPC) Financial Analysis

Stanley Black & Decker (NYSE:SWK) and Q.E.P. (OTCMKTS:QEPC) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stanley Black & Decker $12.75 billion 1.49 $1.23 billion $7.45 16.90
Q.E.P. $322.39 million 0.30 $7.94 million N/A N/A

Stanley Black & Decker has higher revenue and earnings than Q.E.P..

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stanley Black & Decker 0 3 13 0 2.81
Q.E.P. 0 0 0 0 N/A

Stanley Black & Decker currently has a consensus price target of $164.25, suggesting a potential upside of 30.42%. Given Stanley Black & Decker’s higher possible upside, equities analysts plainly believe Stanley Black & Decker is more favorable than Q.E.P..

Institutional & Insider Ownership

86.4% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 6.1% of Q.E.P. shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 51.1% of Q.E.P. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Stanley Black & Decker has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Q.E.P. has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Stanley Black & Decker 7.22% 16.71% 6.32%
Q.E.P. 1.56% 0.97% 0.53%

Dividends

Stanley Black & Decker pays an annual dividend of $2.64 per share and has a dividend yield of 2.1%. Q.E.P. does not pay a dividend. Stanley Black & Decker pays out 35.4% of its earnings in the form of a dividend. Stanley Black & Decker has increased its dividend for 50 consecutive years.

Summary

Stanley Black & Decker beats Q.E.P. on 12 of the 15 factors compared between the two stocks.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc. provides tools and storage, engineered fastening and infrastructure, and security solutions worldwide. The company's Tools & Storage segment offers professional products, including corded and cordless electric power tools and equipment, drills, impact wrenches and drivers, grinders, saws, routers, and sanders, as well as pneumatic tools and fasteners, including nail guns, nails, staplers and staples, and concrete and masonry anchors; and consumer products, such as lawn and garden products comprising hedge and string trimmers, lawn mowers, and edgers and related accessories, as well as home products, such as hand-held vacuums, paint tools, and cleaning appliances. It also offers hand tools, including planes, hammers, demolition tools, clamps, vises, knives, chisels, and industrial and automotive tools, as well as measuring, leveling, and layout tools; power tool accessories; and storage products. The company's Industrial segment sells engineered fastening products and systems, which include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners; sells and rents custom pipe handling, joint welding, and coating equipment; provides pipeline inspection services; and sells hydraulic tools and accessories. Its Security segment provides alarm and fire alarm monitoring, video surveillance, systems integration, and system maintenance solutions; sells healthcare solutions, which include asset tracking, wander and fall management, and emergency call products, as well as infant, pediatric, and patient protection products; and sells automatic doors. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. The company was founded in 1843 and is headquartered in New Britain, Connecticut.

Q.E.P. Company Profile

Q.E.P. Co., Inc. manufactures, markets, and distributes a range of hardwood and laminate flooring, flooring installation tools, adhesives, and flooring related products for the professional installation and do-it-yourself markets. It operates in three segments: North America, Europe, and Australia/New Zealand. The company also provides industrial tools to the industrial trades. Its product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers; scrapers; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; clean-up, repair, and maintenance products; knee pads and safety tools; installation kits; underlayment products; cement boards and masonry tools; and Brutus products. The company markets its products under the QEP, ROBERTS, HarrisWood, Fausfloor, Capitol, Nupla, HISCO, Ludell, Porta-Nails, Elastiment, Vitrex, Homelux, Tilerite, PRCI, Plasplugs, Tomecanic, and Benetiere brands. Q.E.P. Co., Inc. sells its products to home improvement retail centers, specialty distribution outlets, municipalities, and industrial solution providers. The company was founded in 1979 and is based in Boca Raton, Florida.

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