Reviewing Green Brick Partners (NASDAQ:GRBK) and Stanley Black & Decker (NYSE:SWK)

Stanley Black & Decker (NYSE:SWK) and Green Brick Partners (NASDAQ:GRBK) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares Stanley Black & Decker and Green Brick Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stanley Black & Decker	5.53%	10.22%	4.41%
Green Brick Partners	17.70%	25.35%	17.29%

Analyst Recommendations

This is a summary of current recommendations and price targets for Stanley Black & Decker and Green Brick Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Black & Decker	1	7	5	0	2.31
Green Brick Partners	0	3	0	0	2.00

Stanley Black & Decker presently has a consensus price target of $100.09, indicating a potential downside of 11.62%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, analysts clearly believe Stanley Black & Decker is more favorable than Green Brick Partners.

Institutional & Insider Ownership

87.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 78.2% of Green Brick Partners shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by insiders. Comparatively, 30.3% of Green Brick Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Stanley Black & Decker and Green Brick Partners”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	$15.13 billion	1.11	$401.90 million	$5.59	20.26
Green Brick Partners	$1.98 billion	1.31	$284.63 million	$6.22	9.82

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

Volatility and Risk

Stanley Black & Decker has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

About Stanley Black & Decker

Stanley Black & Decker is a global manufacturer of tools, outdoor equipment and engineered fastening products. Its portfolio includes power and hand tools, tool storage, accessories, and outdoor power equipment sold under brands such as DEWALT, CRAFTSMAN, STANLEY and BLACK+DECKER. The company also supplies engineered fastening solutions and related products to customers in industries such as construction, automotive and manufacturing. Its products serve professional users, businesses and consumers in markets around the world.

About Green Brick Partners

Green Brick Partners, Inc. is a homebuilding and land development company that operates through a network of regional builders and real estate businesses. Its activities include acquiring and developing land, constructing homes, and marketing them to homebuyers. The company serves markets in Texas, Georgia, Colorado and Florida. Its homebuilding brands include Trophy Signature Homes, CB JENI Homes, Normandy Homes, Southgate Homes, The Providence Group, Challenger Homes and GHO Homes. Green Brick traces its roots to 2006 and became a publicly traded company in 2014.