Stanley Black & Decker (NYSE:SWK – Get Free Report) and M/I Homes (NYSE:MHO – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Earnings and Valuation
This table compares Stanley Black & Decker and M/I Homes”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stanley Black & Decker | $15.13 billion | 1.18 | $401.90 million | $4.10 | 28.90 |
| M/I Homes | $4.42 billion | 0.78 | $402.94 million | $10.52 | 13.14 |
M/I Homes has lower revenue, but higher earnings than Stanley Black & Decker. M/I Homes 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.
Risk and Volatility
Stanley Black & Decker has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, M/I Homes has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Institutional & Insider Ownership
87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 95.1% of M/I Homes shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 3.6% of M/I Homes shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Stanley Black & Decker and M/I Homes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stanley Black & Decker | 4.07% | 8.78% | 3.73% |
| M/I Homes | 6.59% | 10.12% | 6.74% |
Analyst Ratings
This is a breakdown of current recommendations for Stanley Black & Decker and M/I Homes, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stanley Black & Decker | 1 | 7 | 5 | 0 | 2.31 |
| M/I Homes | 1 | 2 | 3 | 1 | 2.57 |
Stanley Black & Decker currently has a consensus target price of $94.82, indicating a potential downside of 19.99%. M/I Homes has a consensus target price of $164.40, indicating a potential upside of 18.89%. Given M/I Homes’ stronger consensus rating and higher probable upside, analysts clearly believe M/I Homes is more favorable than Stanley Black & Decker.
Summary
M/I Homes beats Stanley Black & Decker on 11 of the 15 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 M/I Homes
M/I Homes, Inc., together with its subsidiaries, engages in the construction and sale of single-family residential homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It also designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, multi-generational, and luxury homebuyers under the M/I Homes brand name. In addition, the company purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. Further, the company originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. M/I Homes, Inc. was founded in 1976 and is based in Columbus, Ohio.
Receive News & Ratings for Stanley Black & Decker Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stanley Black & Decker and related companies with MarketBeat.com's FREE daily email newsletter.
