Stanley Black & Decker, Inc. (SWK) vs Timken Company (The) (TKR)

Stanley Black & Decker, Inc. and Timken Company (The) are both Tools & Accessories companies. Stanley Black & Decker, Inc. is the larger, with a market value of $13.6B against $8.3B — 1.7× the size. Stanley Black & Decker, Inc. trades at the lower P/E: 22.2× against 31.6×. Timken Company (The) grew revenue faster over the last twelve months: 5.45% against 0.57%. Timken Company (The) has the higher net margin (5.43% vs 4.07%) and the higher return on invested capital (6.23% vs 5.44%). Both pay a dividend; Stanley Black & Decker, Inc. yields more (3.73% vs 1.69%). Across the 23 metrics below, Stanley Black & Decker, Inc. leads on 13 and Timken Company (The) on 10.

Valuation

Metric SWK TKR Tools & Accessories median
P/E 22.24 31.57 25.91
P/S 0.90 1.71 1.36
P/B 1.53 2.43 1.98
Price to free cash flow 10.51 21.01 18.96
EV/EBITDA 10.91 13.32 13.02
EV/Sales 1.17 2.07 1.27
Earnings yield 4.50% 3.17% 3.72%
Free cash flow yield 9.52% 4.76% 4.42%

Profitability

Metric SWK TKR Tools & Accessories median
Gross margin 31.90% 30.83% 33.41%
Operating margin 7.50% 10.55% 10.31%
Net margin 4.07% 5.43% 5.43%
Free cash flow margin 8.57% 8.16% 8.16%
Return on equity 6.89% 7.80% 7.80%
Return on assets 2.91% 3.79% 3.79%
Return on invested capital 5.44% 6.23% 6.23%

Growth

Metric SWK TKR Tools & Accessories median
Revenue growth (TTM) 0.57% 5.45% 5.45%
EPS growth (last fiscal year) 35.90% (17.64%) —
Revenue growth, 5-year CAGR 3.48% 5.45% 5.45%
Net income growth, 5-year CAGR (18.68%) 0.27% 0.27%

Health

Metric SWK TKR Tools & Accessories median
Debt to equity 0.53 0.62 0.44
Current ratio 1.43 3.10 2.62
Net debt to EBITDA 3.99 1.97 1.21

Dividend

Metric SWK TKR Tools & Accessories median
Dividend yield 3.73% 1.69% 2.20%
Payout ratio 0.86 0.21 0.35

Size

Metric SWK TKR Tools & Accessories median
Market cap 13.62b 8.25b 8.25b

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