Critical Review: Stanley Black & Decker (NYSE:SWK) versus Rectitude (NASDAQ:RECT)

Rectitude (NASDAQ:RECT) and Stanley Black & Decker (NYSE:SWK) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Stanley Black & Decker	-1.33%	6.44%	2.47%

Analyst Recommendations

This is a summary of recent ratings and target prices for Rectitude and Stanley Black & Decker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	0	0	0	0	0.00
Stanley Black & Decker	1	5	2	0	2.13

Stanley Black & Decker has a consensus price target of $101.25, indicating a potential upside of 20.05%. Given Stanley Black & Decker’s stronger consensus rating and higher possible upside, analysts clearly believe Stanley Black & Decker is more favorable than Rectitude.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$30.69 million	3.17	$2.49 million	N/A	N/A
Stanley Black & Decker	$15.78 billion	0.82	-$281.70 million	($1.37)	-61.56

Rectitude has higher earnings, but lower revenue than Stanley Black & Decker.

Insider & Institutional Ownership

87.8% of Stanley Black & Decker shares are held by institutional investors. 0.6% of Stanley Black & Decker shares are held 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.

Summary

Stanley Black & Decker beats Rectitude on 8 of the 11 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

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 Storage segment, and Industrial segment. The Tools and Storage segment consists of power tools and equipment, hand tools, accessories, and storage businesses. 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.