Snap-On (NYSE:SNA) versus Greenland Technologies (NASDAQ:GTEC) Critical Analysis

Snap-On (NYSE:SNA) and Greenland Technologies (NASDAQ:GTEC) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

Snap-On has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Greenland Technologies has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Snap-On and Greenland Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap-On	0	1	5	0	2.83
Greenland Technologies	1	0	0	0	1.00

Snap-On currently has a consensus target price of $426.20, suggesting a potential upside of 5.69%. Given Snap-On’s stronger consensus rating and higher possible upside, research analysts clearly believe Snap-On is more favorable than Greenland Technologies.

Insider & Institutional Ownership

84.9% of Snap-On shares are held by institutional investors. Comparatively, 10.9% of Greenland Technologies shares are held by institutional investors. 3.8% of Snap-On shares are held by insiders. Comparatively, 36.9% of Greenland Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Snap-On and Greenland Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap-On	$5.27 billion	3.95	$1.02 billion	$19.61	20.56
Greenland Technologies	$90.69 million	0.16	$4.93 million	$0.25	2.84

Snap-On has higher revenue and earnings than Greenland Technologies. Greenland Technologies is trading at a lower price-to-earnings ratio than Snap-On, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Snap-On and Greenland Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap-On	21.25%	17.07%	12.00%
Greenland Technologies	6.27%	8.54%	4.75%

Summary

Snap-On beats Greenland Technologies on 13 of the 14 factors compared between the two stocks.

About Snap-On

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company provides hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other related products; power tools, such as cordless, pneumatic, and hydraulic and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. It provides handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics; and engineered solutions. In addition, the company offers solutions for the service of vehicles and industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists, as well as after-sales support services and training programs. Further, it provides financing programs to facilitate the sales of its products and support its franchise business. It serves the aviation and aerospace, agriculture, infrastructure construction, government and military, mining, natural resources, power generation, and technical education industries. Snap-on Incorporated was incorporated in 1920 and is headquartered in Kenosha, Wisconsin.

About Greenland Technologies

Greenland Technologies Holding Corporation designs, develops, manufactures, and sells components and products for material handling industries worldwide. The company offers transmission products, such as transmission systems and integrated powertrain primarily for electric forklift trucks; electric industrial heavy equipment, including electric wheeled front loader, electric excavator, and electric lithium forklifts; and provides charging solutions. Its products are used in manufacturing and logistic applications, such as factories, workshops, warehouses, fulfillment centers, shipyards, and seaports. Greenland Technologies Holding Corporation was and is headquartered in East Windsor, New Jersey.