Lincoln Electric Holdings, Inc. (LECO) vs Stanley Black & Decker, Inc. (SWK)

Lincoln Electric Holdings, Inc. and Stanley Black & Decker, Inc. are both Tools & Accessories companies. Stanley Black & Decker, Inc. is the larger, with a market value of $17.4B against $14.7B — 1.2× the size. Stanley Black & Decker, Inc. trades at the lower P/E: 20.5× against 26.2×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 11.1% against 0.38%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 5.53%) and the higher return on invested capital (20.7% vs 7.05%). Both pay a dividend; Stanley Black & Decker, Inc. yields more (2.89% vs 1.15%). Across the 23 metrics below, Stanley Black & Decker, Inc. leads on 12 and Lincoln Electric Holdings, Inc. on 11.

Valuation

Metric LECO SWK Tools & Accessories median
P/E 26.18 20.53 24.49
P/S 3.23 1.12 1.29
P/B 9.64 1.92 2.01
Price to free cash flow 28.91 9.80 15.80
EV/EBITDA 17.67 10.95 12.85
EV/Sales 3.45 1.38 1.67
Earnings yield 3.82% 4.87% 3.95%
Free cash flow yield 3.46% 10.20% 5.81%

Profitability

Metric LECO SWK Tools & Accessories median
Gross margin 35.49% 33.75% 34.62%
Operating margin 17.29% 9.48% 10.65%
Net margin 12.40% 5.53% 6.76%
Free cash flow margin 11.17% 11.40% 9.25%
Return on equity 38.75% 9.44% 9.44%
Return on assets 14.93% 4.03% 4.19%
Return on invested capital 20.71% 7.05% 7.05%

Growth

Metric LECO SWK Tools & Accessories median
Revenue growth (TTM) 11.13% 0.38% 6.05%
EPS growth (last fiscal year) 14.36% 35.90% 35.90%
Revenue growth, 5-year CAGR 9.78% 3.48% 5.26%
Net income growth, 5-year CAGR 20.36% (18.68%) 2.99%

Health

Metric LECO SWK Tools & Accessories median
Debt to equity 0.74 0.53 0.53
Current ratio 1.91 1.42 2.56
Net debt to EBITDA 1.21 3.99 1.21

Dividend

Metric LECO SWK Tools & Accessories median
Dividend yield 1.15% 2.89% 1.58%
Payout ratio 0.30 0.60 0.34

Size

Metric LECO SWK Tools & Accessories median
Market cap 14.74b 17.41b 6.93b

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