Contrasting Snap-on (NYSE:SNA) and CompX International (NYSE:CIX)

Snap-on (NYSE:SNA – Get Rating) and CompX International (NYSE:CIX – Get Rating) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Dividends

Snap-on pays an annual dividend of $6.48 per share and has a dividend yield of 2.5%. CompX International pays an annual dividend of $1.00 per share and has a dividend yield of 5.4%. Snap-on pays out 37.2% of its earnings in the form of a dividend. CompX International pays out 56.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Snap-on has raised its dividend for 13 consecutive years and CompX International has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

85.2% of Snap-on shares are owned by institutional investors. Comparatively, 8.3% of CompX International shares are owned by institutional investors. 4.2% of Snap-on shares are owned by insiders. Comparatively, 0.4% of CompX International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Snap-on and CompX International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap-on	1	4	4	0	2.33
CompX International	0	0	0	0	N/A

Snap-on presently has a consensus price target of $260.57, indicating a potential downside of 0.11%. Given Snap-on’s higher probable upside, equities analysts clearly believe Snap-on is more favorable than CompX International.

Volatility and Risk

Snap-on has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, CompX International has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Snap-on and CompX International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap-on	20.60%	21.17%	13.57%
CompX International	13.28%	13.48%	12.13%

Valuation & Earnings

This table compares Snap-on and CompX International’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap-on	$4.49 billion	3.07	$911.70 million	$17.43	14.97
CompX International	$166.60 million	1.38	$20.87 million	$1.78	10.49

Snap-on has higher revenue and earnings than CompX International. CompX International is trading at a lower price-to-earnings ratio than Snap-on, indicating that it is currently the more affordable of the two stocks.

Summary

Snap-on beats CompX International on 15 of the 16 factors compared between the two stocks.

About Snap-on

(Get Rating)

Snap-On, Inc. engages in the manufacture and marketing of tools, equipment, diagnostics, repair information, and systems solutions for professional users performing critical tasks. Its products and services include hand and power tools, tool storage, diagnostics software, handheld and PC-based diagnostic products, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries such as aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education. The firm operates through the following segments: Commercial and Industrial Group, Snap-On Tools Group, Repair Systems and Information Group, and Financial Services. The Commercial and Industrial Group segment consists of business operations that serve the aerospace, natural resources, government, power generation, transportation, and technical education markets. The Snap-On Tools Group segment includes business operations primarily serving vehicle service and repair technicians through its worldwide mobile tool distribution channel. The Repair System and Information Gr

About CompX International

(Get Rating)

CompX International, Inc. engages in the manufacture of security products used in the recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, and a variety of other industries. It operates through the Security Products and Marine Components segments. The Security Products segment manufactures mechanical and electronic cabinet locks and other locking mechanisms used in a variety of applications including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, high security medical cabinetry, electronic circuit panels, storage compartments, and gas station security. The Marine Components segment manufactures and distributes stainless steel exhaust components, gauges, throttle controls, trim tabs, hardware, and accessories primarily for performance and ski and wakeboard boats. The company was founded in 1993 and is headquartered in Dallas, TX.