Stanley Black & Decker (NYSE:SWK) versus Traeger (NYSE:COOK) Head to Head Survey

Stanley Black & Decker (NYSE:SWK) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by company insiders. Comparatively, 16.2% of Traeger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Stanley Black & Decker has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stanley Black & Decker	$15.13 billion	0.91	$401.90 million	$4.10	22.29
Traeger	$559.52 million	0.26	-$115.18 million	($42.04)	-1.26

Stanley Black & Decker has higher revenue and earnings than Traeger. Traeger 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 Traeger’s 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%
Traeger	-23.23%	-13.76%	-3.59%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Stanley Black & Decker and Traeger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Black & Decker	1	6	3	0	2.20
Traeger	1	5	1	0	2.00

Stanley Black & Decker presently has a consensus price target of $92.88, indicating a potential upside of 1.62%. Traeger has a consensus price target of $50.50, indicating a potential downside of 4.58%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, analysts clearly believe Stanley Black & Decker is more favorable than Traeger.

Summary

Stanley Black & Decker beats Traeger on 12 of the 14 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 Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.