Head to Head Contrast: M/I Homes (NYSE:MHO) and Stanley Black & Decker (NYSE:SWK)

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

Insider and Institutional Ownership

87.8% of Stanley Black & Decker shares are owned by institutional investors. Comparatively, 95.1% of M/I Homes shares are owned by institutional investors. 0.7% of Stanley Black & Decker shares are owned by insiders. Comparatively, 3.6% of M/I Homes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Stanley Black & Decker and M/I Homes”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	$15.22 billion	1.12	$401.90 million	$5.59	20.47
M/I Homes	$4.21 billion	0.76	$402.94 million	$10.52	12.14

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.

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	5.53%	10.22%	4.41%
M/I Homes	6.59%	10.12%	6.74%

Risk and Volatility

Stanley Black & Decker has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, M/I Homes has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Stanley Black & Decker and M/I Homes, as provided 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 presently has a consensus target price of $100.09, suggesting a potential downside of 12.51%. M/I Homes has a consensus target price of $164.50, suggesting a potential upside of 28.85%. 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 10 of the 15 factors compared between the two stocks.

About Stanley Black & Decker

Stanley Black & Decker is a global manufacturer of tools, outdoor equipment and engineered fastening products. Its portfolio includes power and hand tools, tool storage, accessories, and outdoor power equipment sold under brands such as DEWALT, CRAFTSMAN, STANLEY and BLACK+DECKER. The company also supplies engineered fastening solutions and related products to customers in industries such as construction, automotive and manufacturing. Its products serve professional users, businesses and consumers in markets around the world.

About M/I Homes

M/I Homes, Inc. is a homebuilder that plans and constructs single-family homes in a range of styles and price points. Its communities serve buyers including first-time homeowners, move-up buyers and luxury-home customers. Founded in 1976 and headquartered in Columbus, Ohio, the company operates in markets across the Midwest, Mid-Atlantic, Southeast and Texas. Its homebuilding operations are complemented by services that help buyers with mortgage financing and title-related needs. Robert H. Schottenstein serves as the company’s chairman and chief executive officer.