L.S. Starrett (NYSE:SCX – Get Free Report) and Husqvarna AB (publ) (OTCMKTS:HSQVY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Insider & Institutional Ownership
41.6% of L.S. Starrett shares are owned by institutional investors. Comparatively, 0.0% of Husqvarna AB (publ) shares are owned by institutional investors. 7.0% of L.S. Starrett shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares L.S. Starrett and Husqvarna AB (publ)’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|L.S. Starrett||$259.30 million||0.32||$14.88 million||$3.06||3.71|
|Husqvarna AB (publ)||N/A||N/A||N/A||$5.10||2.98|
L.S. Starrett pays an annual dividend of $0.40 per share and has a dividend yield of 3.5%. Husqvarna AB (publ) pays an annual dividend of $0.60 per share and has a dividend yield of 4.0%. L.S. Starrett pays out 13.1% of its earnings in the form of a dividend. Husqvarna AB (publ) pays out 11.8% 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. Husqvarna AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares L.S. Starrett and Husqvarna AB (publ)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Husqvarna AB (publ)||N/A||N/A||N/A|
This is a breakdown of current ratings and target prices for L.S. Starrett and Husqvarna AB (publ), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Husqvarna AB (publ)||0||4||1||0||2.20|
L.S. Starrett beats Husqvarna AB (publ) on 7 of the 11 factors compared between the two stocks.
About L.S. Starrett
The L.S. Starrett Company, together with its subsidiaries, manufactures and sells industrial, professional, and consumer measuring and cutting tools, and related products in the United States, Canada, Mexico, Brazil, China, the United Kingdom, Australia, and New Zealand. The company's products include precision tools, electronic gauges, gage blocks, optical vision and laser measuring equipment, custom engineered granite solutions, tape measures, levels, chalk products, squares, band saw blades, hole saws, hacksaw blades, jig saw blades, and reciprocating saw blades, as well as M1 lubricant and precision ground flat stock products. It also provides measuring tools, such as micrometers, vernier calipers, height gages, depth gages, electronic gages, dial indicators, steel rules, combination squares, and custom and non-contact gaging such as vision, optical, and measurement systems. In addition, the company offers hand tools for measuring, marking, and layout that include tapes, levels, chalk lines, and other products for building trades, and construction and retail trades. Further, it provides carbide tipped products for cutting ferrous materials, and non-ferrous metals and castings. The company primarily distributes its precision hand tools, and saw and construction products through distributors or resellers. The company serves metalworking, aerospace, medical, oil and gas, machinery, government, equipment, and automotive markets; marine and farm equipment shops, and do-it-yourselfers; and tradesmen, which comprise builders, carpenters, plumbers, and electricians. The L.S. Starrett Company was founded in 1880 and is headquartered in Athol, Massachusetts.
About Husqvarna AB (publ)
Husqvarna AB (publ) produces and sells outdoor power products, watering products, and lawn care power equipment. It operates through three divisions: Husqvarna Forest & Garden, Gardena, and Husqvarna Construction. The Husqvarna Forest & Garden division offers handheld products, such as chainsaws, brush cutters, trimmers, and leaf blowers; wheeled products, such as front riders and zero-turn mowers; robotic lawn mowers; and accessories and spare parts. The Gardena division provides residential and smart watering; robotic mowers; garden hand tools; electric powered gardening tools; and smart garden systems. The Husqvarna Construction division offers power cutters, light compaction and concrete placement equipment, floor grinding machines, dust and slurry solutions, diamond tools for construction and stone industries, surface preparation equipment, floor saws, and demolition robots. The company sells its products and solutions to forestry, tree care, landscaping, commercial lawn, and garden services sectors, as well as home and garden owners, and light construction and stone industries primarily under the Husqvarna, Gardena, Orbit, Flymo, RedMax, Zenoah, and McCulloch brands through dealers and retailers. It operates in Germany, France, Sweden, Austria, rest of Europe, the Asia/Pacific, Canada, the United States, Latin America, and internationally. Husqvarna AB (publ) was founded in 1689 and is headquartered in Stockholm, Sweden.
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