Stanley Black & Decker (SWK) vs. Pentair plc. Ordinary Share (PNR) Financial Analysis

Stanley Black & Decker (NYSE: SWK) and Pentair plc. Ordinary Share (NYSE:PNR) are both large-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Earnings & Valuation

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This table compares Stanley Black & Decker and Pentair plc. Ordinary Share’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stanley Black & Decker $12.75 billion 1.83 $1.23 billion $8.05 18.80
Pentair plc. Ordinary Share $4.94 billion 2.48 $666.50 million $3.63 18.54

Stanley Black & Decker has higher revenue and earnings than Pentair plc. Ordinary Share. Pentair plc. Ordinary Share 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Stanley Black & Decker and Pentair plc. Ordinary Share, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stanley Black & Decker 0 3 14 0 2.82
Pentair plc. Ordinary Share 4 7 3 0 1.93

Stanley Black & Decker presently has a consensus price target of $179.87, suggesting a potential upside of 18.87%. Pentair plc. Ordinary Share has a consensus price target of $71.09, suggesting a potential upside of 5.62%. Given Stanley Black & Decker’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Stanley Black & Decker is more favorable than Pentair plc. Ordinary Share.

Volatility & Risk

Stanley Black & Decker has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Pentair plc. Ordinary Share has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Dividends

Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.7%. Pentair plc. Ordinary Share pays an annual dividend of $1.40 per share and has a dividend yield of 2.1%. Stanley Black & Decker pays out 31.3% of its earnings in the form of a dividend. Pentair plc. Ordinary Share pays out 38.6% 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 increased its dividend for 50 consecutive years and Pentair plc. Ordinary Share has increased its dividend for 41 consecutive years.

Profitability

This table compares Stanley Black & Decker and Pentair plc. Ordinary Share’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stanley Black & Decker 9.62% 15.89% 5.91%
Pentair plc. Ordinary Share 13.50% 13.41% 6.86%

Insider and Institutional Ownership

84.0% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 86.5% of Pentair plc. Ordinary Share shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 9.9% of Pentair plc. Ordinary Share shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Stanley Black & Decker beats Pentair plc. Ordinary Share on 10 of the 17 factors compared between the two stocks.

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.

About Pentair plc. Ordinary Share

Pentair, Inc. (Pentair) is a focused diversified industrial manufacturing company. The Company operates in two segments: Water & Fluid Solutions and Technical Products. Water & Fluid Solutions is providing products and systems used worldwide in the movement, storage and treatment of water. Technical Products is engaged in the global enclosures and thermal management markets, designing and manufacturing standard, modified and custom enclosures that house and protect sensitive electronics and electrical components and protect the people that use them. On May 12, 2011, the Company acquired as part of Water & Fluid Solutions, the Clean Process Technologies (CPT) division of Norit Holding B.V. In January 2011, it acquired as part of Water & Fluid Solutions, interests of Hidro Filtros do Brasil (Hidro Filtros).

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