Snap-On Incorporated (SNA) vs Timken Company (The) (TKR)

Snap-On Incorporated and Timken Company (The) are both Tools & Accessories companies. Snap-On Incorporated is the larger, with a market value of $18.9B against $6.9B — 2.7× the size. Snap-On Incorporated trades at the lower P/E: 18.7× against 23.8×. Timken Company (The) grew revenue faster over the last twelve months: 5.95% against 3.14%. Snap-On Incorporated has the higher net margin (20.8% vs 5.88%) and the higher return on invested capital (15.4% vs 6.76%). Both pay a dividend; Snap-On Incorporated yields more (2.67% vs 1.43%). Across the 23 metrics below, Snap-On Incorporated leads on 17 and Timken Company (The) on 6.

Valuation

Metric SNA TKR Tools & Accessories median
P/E 18.74 23.82 23.82
P/S 3.89 1.43 1.27
P/B 3.09 40.07 3.60
Price to free cash flow 17.18 15.36 15.76
EV/EBITDA 12.82 10.97 12.84
EV/Sales 3.73 1.74 1.66
Earnings yield 5.34% 4.20% 4.03%
Free cash flow yield 5.82% 6.51% 5.82%

Profitability

Metric SNA TKR Tools & Accessories median
Gross margin 50.49% 31.26% 34.62%
Operating margin 26.99% 10.98% 10.65%
Net margin 20.82% 5.88% 6.76%
Free cash flow margin 22.64% 9.30% 9.30%
Return on equity 16.91% 16.33% 10.51%
Return on assets 11.89% 4.19% 4.19%
Return on invested capital 15.35% 6.76% 7.05%

Growth

Metric SNA TKR Tools & Accessories median
Revenue growth (TTM) 3.14% 5.95% 6.18%
EPS growth (last fiscal year) (1.64%) (17.64%) 35.90%
Revenue growth, 5-year CAGR 5.71% 5.45% 5.26%
Net income growth, 5-year CAGR 10.15% 0.27% 2.99%

Health

Metric SNA TKR Tools & Accessories median
Debt to equity 0.15 0.57 0.53
Current ratio 3.55 2.56 2.60
Net debt to EBITDA (0.31) 1.97 1.21

Dividend

Metric SNA TKR Tools & Accessories median
Dividend yield 2.67% 1.43% 1.55%
Payout ratio 0.51 0.34 0.34

Size

Metric SNA TKR Tools & Accessories median
Market cap 18.90b 6.93b 7.39b

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