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. Lincoln Electric Holdings, Inc. and Stanley Black & Decker, Inc. are of similar size ($14.5B and $13.6B). Stanley Black & Decker, Inc. trades at the lower P/E: 22.2× against 26.9×. Lincoln Electric Holdings, Inc. grew revenue faster over the last twelve months: 9.32% against 0.57%. Lincoln Electric Holdings, Inc. has the higher net margin (12.4% vs 4.07%) and the higher return on invested capital (19.5% vs 5.44%). Both pay a dividend; Stanley Black & Decker, Inc. yields more (3.73% vs 1.12%). Across the 23 metrics below, Lincoln Electric Holdings, Inc. leads on 12 and Stanley Black & Decker, Inc. on 11.

Valuation

Metric LECO SWK Tools & Accessories median
P/E 26.90 22.24 25.91
P/S 3.31 0.90 1.36
P/B 9.56 1.53 1.98
Price to free cash flow 27.22 10.51 18.96
EV/EBITDA 18.30 10.91 13.02
EV/Sales 3.55 1.17 1.27
Earnings yield 3.72% 4.50% 3.72%
Free cash flow yield 3.67% 9.52% 4.42%

Profitability

Metric LECO SWK Tools & Accessories median
Gross margin 35.96% 31.90% 33.41%
Operating margin 17.13% 7.50% 10.31%
Net margin 12.35% 4.07% 5.43%
Free cash flow margin 12.18% 8.57% 8.16%
Return on equity 37.74% 6.89% 7.80%
Return on assets 14.68% 2.91% 3.79%
Return on invested capital 19.49% 5.44% 6.23%

Growth

Metric LECO SWK Tools & Accessories median
Revenue growth (TTM) 9.32% 0.57% 5.45%
EPS growth (last fiscal year) 14.36% 35.90% —
Revenue growth, 5-year CAGR 9.78% 3.48% 5.45%
Net income growth, 5-year CAGR 20.36% (18.68%) 0.27%

Health

Metric LECO SWK Tools & Accessories median
Debt to equity 0.74 0.53 0.44
Current ratio 1.98 1.43 2.62
Net debt to EBITDA 1.21 3.99 1.21

Dividend

Metric LECO SWK Tools & Accessories median
Dividend yield 1.12% 3.73% 2.20%
Payout ratio 0.30 0.86 0.35

Size

Metric LECO SWK Tools & Accessories median
Market cap 14.52b 13.62b 8.25b

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