Stanley Black & Decker (NYSE:SWK – Get Free Report) and Amada (OTCMKTS:AMDLY – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Insider and Institutional Ownership
87.8% of Stanley Black & Decker shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Stanley Black & Decker and Amada, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stanley Black & Decker | 1 | 5 | 5 | 0 | 2.36 |
| Amada | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Stanley Black & Decker pays an annual dividend of $3.28 per share and has a dividend yield of 4.7%. Amada pays an annual dividend of $1.22 per share and has a dividend yield of 2.7%. Stanley Black & Decker pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amada pays out 52.4% of its earnings in the form of a dividend. Stanley Black & Decker has increased its dividend for 58 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Stanley Black & Decker has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Amada has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Earnings and Valuation
This table compares Stanley Black & Decker and Amada”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stanley Black & Decker | $15.37 billion | 0.70 | $286.30 million | $3.15 | 22.00 |
| Amada | $2.60 billion | 1.45 | $213.75 million | $2.33 | 19.74 |
Stanley Black & Decker has higher revenue and earnings than Amada. Amada 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.
Profitability
This table compares Stanley Black & Decker and Amada’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stanley Black & Decker | 3.15% | 7.76% | 3.08% |
| Amada | 7.29% | 5.45% | 4.39% |
Summary
Stanley Black & Decker beats Amada on 13 of the 17 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 Amada
Amada Co., Ltd., together with its subsidiaries, manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment in Japan, North America, Europe, Asia, and internationally. It offers sheet metal fabrication machines, including laser machines, punch and laser combination machines, turret punch presses, press brakes, bending robots, and welders, as well as software solutions; general fabrication machines, such as shearing and deburring machines, corner shear, iron worker, AMS SPACE series, horizontal benders, tapping and fastener insertion machines, and environment related products; cutting fluids, lubricants, and other consumables; and a range of tools for bending and punching. The company also provides metal cutting machines, such as hyper saw, pulse cutting band saw, automatic and semi-automatic general-purpose band saw, vertical band saw, circular saw, and other machines; structural steel machines; grinding machines; and band saw blades and circular saw blades that are used for metal cutting machines. In addition, it offers precision welding machines, including laser welders and markers, resistance welders, and systems for use in automobile parts, electronic components, and medical instruments. Further, the company provides consumables, and tooling equipment. Additionally, it offers stamping presses and stamping press equipment, and spring machines. The company was formerly known as Amada Holdings Co., Ltd. Amada Co., Ltd. was founded in 1946 and is headquartered in Isehara, Japan.
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