Critical Contrast: Stanley Black & Decker (NYSE:SWK) vs. Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and Stanley Black & Decker (NYSE:SWK) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

94.2% of Core & Main shares are held by institutional investors. Comparatively, 87.8% of Stanley Black & Decker shares are held by institutional investors. 3.5% of Core & Main shares are held by company insiders. Comparatively, 0.7% of Stanley Black & Decker shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	1	4	6	0	2.45
Stanley Black & Decker	1	5	5	0	2.36

Core & Main currently has a consensus price target of $60.00, suggesting a potential downside of 4.25%. Stanley Black & Decker has a consensus price target of $91.10, suggesting a potential upside of 36.01%. Given Stanley Black & Decker’s higher probable upside, analysts plainly believe Stanley Black & Decker is more favorable than Core & Main.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.47%	23.55%	6.80%
Stanley Black & Decker	3.15%	7.76%	3.08%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.44 billion	1.66	$411.00 million	$2.15	29.14
Stanley Black & Decker	$15.37 billion	0.67	$286.30 million	$2.41	27.79

Core & Main has higher earnings, but lower revenue than Stanley Black & Decker. Stanley Black & Decker is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Core & Main has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Summary

Core & Main beats Stanley Black & Decker on 10 of the 14 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

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.