Eastern (NASDAQ:EML) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Eastern pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Stanley Black & Decker pays an annual dividend of $2.64 per share and has a dividend yield of 2.1%. Stanley Black & Decker pays out 35.4% of its earnings in the form of a dividend. 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.
65.6% of Eastern shares are owned by institutional investors. Comparatively, 86.4% of Stanley Black & Decker shares are owned by institutional investors. 13.7% of Eastern shares are owned by company insiders. Comparatively, 0.7% of Stanley Black & Decker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Eastern 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|
Stanley Black & Decker has a consensus target price of $164.25, suggesting a potential upside of 29.82%. Given Stanley Black & Decker’s higher possible upside, analysts clearly believe Stanley Black & Decker is more favorable than Eastern.
Volatility & Risk
Eastern has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
This table compares Eastern 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||7.22%||16.71%||6.32%|
Earnings & Valuation
This table compares Eastern and Stanley Black & Decker’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eastern||$204.24 million||0.83||$5.04 million||N/A||N/A|
|Stanley Black & Decker||$12.75 billion||1.50||$1.23 billion||$7.45||16.98|
Stanley Black & Decker has higher revenue and earnings than Eastern.
Stanley Black & Decker beats Eastern on 12 of the 15 factors compared between the two stocks.
The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally. The company's Industrial Hardware segment offers passenger restraint and vehicular locks, latches, hinges, mirrors, mirror-cameras, light-weight sleeper boxes, and truck bodies for tractor-trailer trucks, specialty commercial vehicles, recreational vehicles, fire and rescue vehicles, school buses, military vehicles, and other vehicles. This segment also provides fasteners and other closure devices. The company's Security Products segment offers e engineered and standard closing and locking systems, including vehicular accessory locks, cabinet locks, cam locks, electric switch locks, tubular key locks, and combination padlocks under the SESAMEE, PRESTOLOCK and SEARCHALERT names. Its products also include timers, drop meters, coin chutes, money boxes, meter cases, smart cards, value transfer stations, smart card readers, card management software, and access control units. In addition, this segment provides coin acceptors and other coin security products for the commercial laundry markets; and circuit boards and other electronic assemblies to various industries, including measurement systems, semiconductor equipment manufacturing, and industrial controls, medical, and military products. The company's Metal Products segment offers expansion shells to support the roofs of underground mines; and specialty malleable and ductile iron castings. This segment's products include mine roof support anchors, couplers for railroad braking systems, support anchoring for construction, and couplers/fittings for utility industries. The company sells its products to original equipment manufacturers, distributors, route operators, and locksmiths. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.
About Stanley Black & Decker
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.
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