Stanley Black & Decker (NYSE:SWK) versus Traeger (NYSE:COOK) Financial Contrast

Stanley Black & Decker (NYSE:SWK – Get Free Report) and Traeger (NYSE:COOK – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares Stanley Black & Decker and Traeger”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stanley Black & Decker $15.13 billion 0.89 $401.90 million $4.10 21.65
Traeger $559.52 million 0.23 -$115.18 million ($42.04) -1.07

Stanley Black & Decker has higher revenue and earnings than Traeger. Traeger 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.

Insider & Institutional Ownership

87.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by company insiders. Comparatively, 16.2% of Traeger shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Stanley Black & Decker and Traeger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stanley Black & Decker 1 6 3 0 2.20
Traeger 1 5 1 0 2.00

Stanley Black & Decker presently has a consensus target price of $92.88, indicating a potential upside of 4.64%. Traeger has a consensus target price of $50.50, indicating a potential upside of 12.18%. Given Traeger’s higher possible upside, analysts clearly believe Traeger is more favorable than Stanley Black & Decker.

Profitability

This table compares Stanley Black & Decker and Traeger’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%
Traeger -23.23% -13.76% -3.59%

Volatility & Risk

Stanley Black & Decker has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.

Summary

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

About Stanley Black & Decker

(Get Free Report)

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 Traeger

(Get Free Report)

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

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