LECO vs. SWK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LECO and SWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LECO | SWK |
|---|---|---|
| Company Name | Lincoln Electric Holdings, Inc. | Stanley Black & Decker, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Machinery |
| Market Capitalization | 13.17 billion USD | 11.44 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | April 7, 1994 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of LECO 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.
Historical Performance at a Glance
| Symbol | LECO | SWK |
|---|---|---|
| 5-Day Price Return | -2.02% | -0.67% |
| 13-Week Price Return | 18.49% | 4.67% |
| 26-Week Price Return | 11.64% | -14.85% |
| 52-Week Price Return | 22.49% | -24.07% |
| Month-to-Date Return | -1.97% | 9.27% |
| Year-to-Date Return | 27.33% | -7.93% |
| 10-Day Avg. Volume | 0.27M | 1.72M |
| 3-Month Avg. Volume | 0.37M | 2.53M |
| 3-Month Volatility | 27.31% | 35.85% |
| Beta | 1.24 | 1.19 |
Profitability
Return on Equity (TTM)
LECO
37.34%
Machinery Industry
- Max
- 34.68%
- Q3
- 19.06%
- Median
- 13.13%
- Q1
- 8.53%
- Min
- -4.87%
LECO’s Return on Equity of 37.34% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SWK
6.59%
Machinery Industry
- Max
- 34.68%
- Q3
- 19.06%
- Median
- 13.13%
- Q1
- 8.53%
- Min
- -4.87%
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.
Net Profit Margin (TTM)
LECO
12.27%
Machinery Industry
- Max
- 19.74%
- Q3
- 11.24%
- Median
- 8.13%
- Q1
- 5.38%
- Min
- -1.11%
A Net Profit Margin of 12.27% places LECO in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
SWK
3.85%
Machinery Industry
- Max
- 19.74%
- Q3
- 11.24%
- Median
- 8.13%
- Q1
- 5.38%
- Min
- -1.11%
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.
Operating Profit Margin (TTM)
LECO
16.67%
Machinery Industry
- Max
- 26.63%
- Q3
- 16.15%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -4.91%
An Operating Profit Margin of 16.67% places LECO in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
SWK
4.70%
Machinery Industry
- Max
- 26.63%
- Q3
- 16.15%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -4.91%
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.
Profitability at a Glance
| Symbol | LECO | SWK |
|---|---|---|
| Return on Equity (TTM) | 37.34% | 6.59% |
| Return on Assets (TTM) | 13.84% | 2.63% |
| Net Profit Margin (TTM) | 12.27% | 3.85% |
| Operating Profit Margin (TTM) | 16.67% | 4.70% |
| Gross Profit Margin (TTM) | 36.51% | 30.03% |
Financial Strength
Current Ratio (MRQ)
LECO
1.68
Machinery Industry
- Max
- 3.83
- Q3
- 2.32
- Median
- 1.72
- Q1
- 1.28
- Min
- 0.78
LECO’s Current Ratio of 1.68 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
SWK
1.04
Machinery Industry
- Max
- 3.83
- Q3
- 2.32
- Median
- 1.72
- Q1
- 1.28
- Min
- 0.78
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.
Debt-to-Equity Ratio (MRQ)
LECO
0.91
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.44
- Q1
- 0.26
- Min
- 0.00
LECO’s leverage is in the upper quartile of the Machinery industry, with a Debt-to-Equity Ratio of 0.91. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
SWK
0.74
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.44
- Q1
- 0.26
- 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.
Interest Coverage Ratio (TTM)
LECO
20.84
Machinery Industry
- Max
- 67.55
- Q3
- 33.79
- Median
- 13.87
- Q1
- 7.97
- Min
- -1.43
LECO’s Interest Coverage Ratio of 20.84 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
SWK
1.75
Machinery Industry
- Max
- 67.55
- Q3
- 33.79
- Median
- 13.87
- 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.
Financial Strength at a Glance
| Symbol | LECO | SWK |
|---|---|---|
| Current Ratio (MRQ) | 1.68 | 1.04 |
| Quick Ratio (MRQ) | 1.08 | 0.29 |
| Debt-to-Equity Ratio (MRQ) | 0.91 | 0.74 |
| Interest Coverage Ratio (TTM) | 20.84 | 1.75 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
LECO
1.25%
Machinery Industry
- Max
- 5.32%
- Q3
- 2.84%
- Median
- 1.87%
- Q1
- 1.09%
- Min
- 0.00%
LECO’s Dividend Yield of 1.25% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
SWK
7.39%
Machinery Industry
- Max
- 5.32%
- Q3
- 2.84%
- Median
- 1.87%
- Q1
- 1.09%
- Min
- 0.00%
SWK’s Dividend Yield of 7.39% 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.
Dividend Payout Ratio (TTM)
LECO
32.88%
Machinery Industry
- Max
- 202.17%
- Q3
- 98.65%
- Median
- 55.54%
- Q1
- 29.03%
- Min
- 0.00%
LECO’s Dividend Payout Ratio of 32.88% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SWK
148.38%
Machinery Industry
- Max
- 202.17%
- Q3
- 98.65%
- Median
- 55.54%
- Q1
- 29.03%
- 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.
Dividend at a Glance
| Symbol | LECO | SWK |
|---|---|---|
| Dividend Yield (TTM) | 1.25% | 7.39% |
| Dividend Payout Ratio (TTM) | 32.88% | 148.38% |
Valuation
Price-to-Earnings Ratio (TTM)
LECO
26.26
Machinery Industry
- Max
- 53.66
- Q3
- 31.29
- Median
- 22.00
- Q1
- 16.18
- Min
- 7.00
LECO’s P/E Ratio of 26.26 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.
SWK
20.08
Machinery Industry
- Max
- 53.66
- Q3
- 31.29
- Median
- 22.00
- Q1
- 16.18
- Min
- 7.00
SWK’s P/E Ratio of 20.08 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.
Price-to-Sales Ratio (TTM)
LECO
3.22
Machinery Industry
- Max
- 5.04
- Q3
- 2.72
- Median
- 1.67
- Q1
- 1.04
- Min
- 0.24
LECO’s P/S Ratio of 3.22 is in the upper echelon for the Machinery 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
0.77
Machinery Industry
- Max
- 5.04
- Q3
- 2.72
- Median
- 1.67
- Q1
- 1.04
- Min
- 0.24
In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.77 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.
Price-to-Book Ratio (MRQ)
LECO
8.39
Machinery Industry
- Max
- 7.23
- Q3
- 3.90
- Median
- 2.52
- Q1
- 1.47
- Min
- 0.49
At 8.39, LECO’s P/B Ratio is at an extreme premium to the Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
SWK
1.16
Machinery Industry
- Max
- 7.23
- Q3
- 3.90
- Median
- 2.52
- Q1
- 1.47
- Min
- 0.49
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.
Valuation at a Glance
| Symbol | LECO | SWK |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.26 | 20.08 |
| Price-to-Sales Ratio (TTM) | 3.22 | 0.77 |
| Price-to-Book Ratio (MRQ) | 8.39 | 1.16 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.16 | 7.08 |