Stanley Black & Decker (NYSE:SWK – Get Free Report) and Dorel Industries (OTCMKTS:DIIBF – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and price targets for Stanley Black & Decker and Dorel Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stanley Black & Decker | 1 | 7 | 5 | 0 | 2.31 |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
Stanley Black & Decker presently has a consensus price target of $100.09, suggesting a potential downside of 13.01%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stanley Black & Decker is more favorable than Dorel Industries.
Profitability
This table compares Stanley Black & Decker and Dorel Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stanley Black & Decker | 5.53% | 10.22% | 4.41% |
| Dorel Industries | -12.73% | N/A | -11.89% |
Volatility and Risk
Stanley Black & Decker has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Insider & Institutional Ownership
87.8% of Stanley Black & Decker shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by company insiders. Comparatively, 19.3% of Dorel Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Stanley Black & Decker and Dorel Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stanley Black & Decker | $15.13 billion | 1.13 | $401.90 million | $5.59 | 20.58 |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($4.16) | -0.23 |
Stanley Black & Decker has higher revenue and earnings than Dorel Industries. Dorel Industries 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 Dorel Industries on 13 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 Dorel Industries
Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.
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