Head-To-Head Comparison: Stanley Black & Decker (NYSE:SWK) versus Zepp Health (NYSE:ZEPP)

Stanley Black & Decker (NYSE:SWK) and Zepp Health (NYSE:ZEPP) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Stanley Black & Decker and Zepp Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Black & Decker	1	6	3	0	2.20
Zepp Health	1	0	1	0	2.00

Stanley Black & Decker currently has a consensus target price of $92.25, indicating a potential downside of 5.76%. Zepp Health has a consensus target price of $53.01, indicating a potential upside of 933.33%. Given Zepp Health’s higher possible upside, analysts clearly believe Zepp Health is more favorable than Stanley Black & Decker.

Insider & Institutional Ownership

87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 36.0% of Zepp Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Stanley Black & Decker has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares Stanley Black & Decker and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stanley Black & Decker	4.07%	8.78%	3.73%
Zepp Health	-14.70%	-15.64%	-6.03%

Earnings and Valuation

This table compares Stanley Black & Decker and Zepp Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stanley Black & Decker	$15.25 billion	0.97	$401.90 million	$4.10	23.88
Zepp Health	$258.90 million	0.29	-$40.07 million	($2.52)	-2.04

Stanley Black & Decker has higher revenue and earnings than Zepp Health. Zepp Health 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.

Summary

Stanley Black & Decker beats Zepp Health on 11 of the 14 factors compared between the two stocks.

About Stanley Black & Decker

Stanley Black & Decker, Inc. engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil and gas, infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the Tools and Outdoor and Industrial segments. The Tools and Outdoor segment refers to power tools, hand tools, accessories and storage, and outdoor power equipment product lines. The Industrial segment includes the engineered fastening and infrastructure businesses. The company was founded by Frederick T. Stanley in 1843 and is headquartered in New Britain, CT.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.