Stanley Black & Decker (NYSE:SWK – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Profitability
This table compares Stanley Black & Decker and Legacy Housing’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% |
| Legacy Housing | 28.56% | 9.53% | 8.74% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Stanley Black & Decker and Legacy Housing, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stanley Black & Decker | 1 | 6 | 4 | 0 | 2.27 |
| Legacy Housing | 0 | 3 | 1 | 0 | 2.25 |
Stanley Black & Decker presently has a consensus price target of $94.11, suggesting a potential downside of 9.00%. Legacy Housing has a consensus price target of $21.00, suggesting a potential downside of 28.47%. Given Stanley Black & Decker’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Stanley Black & Decker is more favorable than Legacy Housing.
Valuation & Earnings
This table compares Stanley Black & Decker and Legacy Housing”s top-line 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 | 1.03 | $401.90 million | $4.10 | 25.22 |
| Legacy Housing | $164.57 million | 4.24 | $41.81 million | $2.17 | 13.53 |
Stanley Black & Decker has higher revenue and earnings than Legacy Housing. Legacy Housing 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.
Insider & Institutional Ownership
87.8% of Stanley Black & Decker shares are held by institutional investors. Comparatively, 89.3% of Legacy Housing shares are held by institutional investors. 0.7% of Stanley Black & Decker shares are held by insiders. Comparatively, 12.7% of Legacy Housing shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Stanley Black & Decker has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Summary
Stanley Black & Decker beats Legacy Housing on 8 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 Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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