Seek Returns logo

AER vs. SWK: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AER and SWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAERSWK
Company NameAerCap Holdings N.V.Stanley Black & Decker, Inc.
CountryIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsMachinery
Market Capitalization21.73 billion USD11.26 billion USD
ExchangeNYSENYSE
Listing DateNovember 21, 2006March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AER and SWK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AER vs. SWK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAERSWK
5-Day Price Return-1.92%-1.76%
13-Week Price Return6.83%-0.23%
26-Week Price Return23.51%12.50%
52-Week Price Return29.00%-31.58%
Month-to-Date Return0.69%-2.14%
Year-to-Date Return27.31%-9.40%
10-Day Avg. Volume1.26M1.41M
3-Month Avg. Volume1.40M2.08M
3-Month Volatility18.28%36.51%
Beta1.141.22

Profitability

Return on Equity (TTM)

AER

17.07%

Trading Companies & Distributors Industry

Max
32.99%
Q3
19.66%
Median
13.72%
Q1
9.74%
Min
-0.34%

AER’s Return on Equity of 17.07% is on par with the norm for the Trading Companies & Distributors industry, indicating its profitability relative to shareholder equity is typical for the sector.

SWK

6.59%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

SWK’s Return on Equity of 6.59% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

AER vs. SWK: A comparison of their Return on Equity (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Net Profit Margin (TTM)

AER

39.91%

Trading Companies & Distributors Industry

Max
16.11%
Q3
9.48%
Median
5.89%
Q1
3.68%
Min
-1.09%

AER’s Net Profit Margin of 39.91% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

SWK

3.85%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 3.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AER vs. SWK: A comparison of their Net Profit Margin (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Operating Profit Margin (TTM)

AER

63.19%

Trading Companies & Distributors Industry

Max
26.26%
Q3
14.59%
Median
7.05%
Q1
4.94%
Min
-8.06%

AER’s Operating Profit Margin of 63.19% is exceptionally high, placing it well above the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

SWK

4.70%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

SWK’s Operating Profit Margin of 4.70% is in the lower quartile for the Machinery industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AER vs. SWK: A comparison of their Operating Profit Margin (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Profitability at a Glance

SymbolAERSWK
Return on Equity (TTM)17.07%6.59%
Return on Assets (TTM)4.05%2.63%
Net Profit Margin (TTM)39.91%3.85%
Operating Profit Margin (TTM)63.19%4.70%
Gross Profit Margin (TTM)91.01%30.03%

Financial Strength

Current Ratio (MRQ)

AER

1.50

Trading Companies & Distributors Industry

Max
3.32
Q3
2.27
Median
1.60
Q1
1.41
Min
0.26

AER’s Current Ratio of 1.50 aligns with the median group of the Trading Companies & Distributors industry, indicating that its short-term liquidity is in line with its sector peers.

SWK

1.04

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

SWK’s Current Ratio of 1.04 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AER vs. SWK: A comparison of their Current Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AER

2.57

Trading Companies & Distributors Industry

Max
1.93
Q3
1.24
Median
0.79
Q1
0.61
Min
0.01

With a Debt-to-Equity Ratio of 2.57, AER operates with exceptionally high leverage compared to the Trading Companies & Distributors industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

SWK

0.74

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

SWK’s Debt-to-Equity Ratio of 0.74 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AER vs. SWK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

AER

2.14

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.67
Q1
2.04
Min
-1.67

AER’s Interest Coverage Ratio of 2.14 is positioned comfortably within the norm for the Trading Companies & Distributors industry, indicating a standard and healthy capacity to cover its interest payments.

SWK

1.75

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, SWK’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

AER vs. SWK: A comparison of their Interest Coverage Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolAERSWK
Current Ratio (MRQ)1.501.04
Quick Ratio (MRQ)0.620.29
Debt-to-Equity Ratio (MRQ)2.570.74
Interest Coverage Ratio (TTM)2.141.75

Growth

Revenue Growth

AER vs. SWK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AER vs. SWK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AER

0.89%

Trading Companies & Distributors Industry

Max
5.25%
Q3
2.95%
Median
2.06%
Q1
1.11%
Min
0.00%

AER’s Dividend Yield of 0.89% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

SWK

7.61%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

SWK’s Dividend Yield of 7.61% is exceptionally high, placing it well above the typical range for the Machinery industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

AER vs. SWK: A comparison of their Dividend Yield (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

AER

6.56%

Trading Companies & Distributors Industry

Max
136.12%
Q3
71.34%
Median
47.49%
Q1
22.56%
Min
0.00%

AER’s Dividend Payout Ratio of 6.56% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

SWK

148.38%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

SWK’s Dividend Payout Ratio of 148.38% is in the upper quartile for the Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AER vs. SWK: A comparison of their Dividend Payout Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Dividend at a Glance

SymbolAERSWK
Dividend Yield (TTM)0.89%7.61%
Dividend Payout Ratio (TTM)6.56%148.38%

Valuation

Price-to-Earnings Ratio (TTM)

AER

7.41

Trading Companies & Distributors Industry

Max
42.69
Q3
25.21
Median
16.99
Q1
13.13
Min
5.35

In the lower quartile for the Trading Companies & Distributors industry, AER’s P/E Ratio of 7.41 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

SWK

19.50

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

SWK’s P/E Ratio of 19.50 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AER vs. SWK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

AER

2.96

Trading Companies & Distributors Industry

Max
4.90
Q3
2.71
Median
1.06
Q1
0.70
Min
0.30

AER’s P/S Ratio of 2.96 is in the upper echelon for the Trading Companies & Distributors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SWK

0.75

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.75 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AER vs. SWK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

AER

1.18

Trading Companies & Distributors Industry

Max
7.55
Q3
4.63
Median
2.09
Q1
1.30
Min
0.31

AER’s P/B Ratio of 1.18 is in the lower quartile for the Trading Companies & Distributors industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

SWK

1.16

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

SWK’s P/B Ratio of 1.16 is in the lower quartile for the Machinery industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AER vs. SWK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Valuation at a Glance

SymbolAERSWK
Price-to-Earnings Ratio (TTM)7.4119.50
Price-to-Sales Ratio (TTM)2.960.75
Price-to-Book Ratio (MRQ)1.181.16
Price-to-Free Cash Flow Ratio (TTM)25.356.87