Seek Returns logo

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

Updated on

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

Company Profile

SymbolSWKTDG
Company NameStanley Black & Decker, Inc.TransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryAerospace & Defense
Market Capitalization10.14 billion USD76.07 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SWK and TDG 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.

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

Historical Performance at a Glance

SymbolSWKTDG
5-Day Price Return-3.37%4.01%
13-Week Price Return-11.36%-3.41%
26-Week Price Return-11.07%-5.31%
52-Week Price Return-23.79%-1.64%
Month-to-Date Return-3.06%2.45%
Year-to-Date Return-18.23%5.79%
10-Day Avg. Volume1.99M0.34M
3-Month Avg. Volume2.03M0.33M
3-Month Volatility36.33%25.35%
Beta1.220.92

Profitability

Return on Equity (TTM)

SWK

4.93%

Machinery Industry

Max
30.85%
Q3
19.99%
Median
12.37%
Q1
8.44%
Min
-7.69%

SWK’s Return on Equity of 4.93% 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.

TDG

37.11%

Aerospace & Defense Industry

Max
43.89%
Q3
23.64%
Median
12.98%
Q1
8.07%
Min
-2.55%

In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

SWK vs. TDG: A comparison of their Return on Equity (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

SWK

2.89%

Machinery Industry

Max
19.28%
Q3
10.99%
Median
7.89%
Q1
5.16%
Min
-1.46%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 2.89% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

TDG

23.49%

Aerospace & Defense Industry

Max
14.96%
Q3
9.50%
Median
6.59%
Q1
4.45%
Min
1.01%

TDG’s Net Profit Margin of 23.49% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

SWK vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

SWK

4.13%

Machinery Industry

Max
27.20%
Q3
15.91%
Median
11.33%
Q1
7.73%
Min
0.23%

SWK’s Operating Profit Margin of 4.13% 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.

TDG

47.04%

Aerospace & Defense Industry

Max
17.97%
Q3
12.09%
Median
9.29%
Q1
6.41%
Min
-1.59%

TDG’s Operating Profit Margin of 47.04% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

SWK vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolSWKTDG
Return on Equity (TTM)4.93%37.11%
Return on Assets (TTM)1.98%9.32%
Net Profit Margin (TTM)2.89%23.49%
Operating Profit Margin (TTM)4.13%47.04%
Gross Profit Margin (TTM)30.14%60.61%

Financial Strength

Current Ratio (MRQ)

SWK

1.11

Machinery Industry

Max
3.27
Q3
2.16
Median
1.75
Q1
1.32
Min
0.70

SWK’s Current Ratio of 1.11 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.

TDG

3.21

Aerospace & Defense Industry

Max
3.37
Q3
2.01
Median
1.22
Q1
1.07
Min
0.68

TDG’s Current Ratio of 3.21 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

SWK vs. TDG: A comparison of their Current Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

SWK

0.74

Machinery Industry

Max
1.49
Q3
0.75
Median
0.45
Q1
0.23
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.

TDG

5.41

Aerospace & Defense Industry

Max
1.89
Q3
0.99
Median
0.63
Q1
0.39
Min
0.03

With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

SWK vs. TDG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

SWK

1.75

Machinery Industry

Max
67.55
Q3
36.46
Median
13.55
Q1
7.73
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.

TDG

2.67

Aerospace & Defense Industry

Max
29.86
Q3
19.49
Median
7.09
Q1
2.62
Min
-7.63

TDG’s Interest Coverage Ratio of 2.67 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

SWK vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolSWKTDG
Current Ratio (MRQ)1.113.21
Quick Ratio (MRQ)0.292.16
Debt-to-Equity Ratio (MRQ)0.745.41
Interest Coverage Ratio (TTM)1.752.67

Growth

Revenue Growth

SWK vs. TDG: 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

SWK vs. TDG: 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)

SWK

8.51%

Machinery Industry

Max
4.98%
Q3
2.83%
Median
1.89%
Q1
1.17%
Min
0.00%

SWK’s Dividend Yield of 8.51% 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.

TDG

12.76%

Aerospace & Defense Industry

Max
2.87%
Q3
1.46%
Median
0.58%
Q1
0.10%
Min
0.00%

TDG’s Dividend Yield of 12.76% is exceptionally high, placing it well above the typical range for the Aerospace & Defense 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.

SWK vs. TDG: A comparison of their Dividend Yield (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

SWK

197.33%

Machinery Industry

Max
209.29%
Q3
102.41%
Median
62.34%
Q1
29.36%
Min
0.00%

SWK’s Dividend Payout Ratio of 197.33% 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.

TDG

872.98%

Aerospace & Defense Industry

Max
110.40%
Q3
51.46%
Median
20.20%
Q1
4.21%
Min
0.00%

At 872.98%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

SWK vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolSWKTDG
Dividend Yield (TTM)8.51%12.76%
Dividend Payout Ratio (TTM)197.33%872.98%

Valuation

Price-to-Earnings Ratio (TTM)

SWK

23.18

Machinery Industry

Max
46.28
Q3
29.52
Median
24.18
Q1
16.92
Min
7.99

SWK’s P/E Ratio of 23.18 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.

TDG

36.37

Aerospace & Defense Industry

Max
94.22
Q3
53.31
Median
32.27
Q1
24.64
Min
14.57

TDG’s P/E Ratio of 36.37 is within the middle range for the Aerospace & Defense 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 vs. TDG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

SWK

0.67

Machinery Industry

Max
5.25
Q3
2.82
Median
1.74
Q1
0.99
Min
0.27

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.67 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.

TDG

8.54

Aerospace & Defense Industry

Max
7.20
Q3
3.95
Median
2.35
Q1
1.71
Min
0.32

With a P/S Ratio of 8.54, TDG trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SWK vs. TDG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

SWK

1.27

Machinery Industry

Max
7.18
Q3
4.18
Median
2.71
Q1
1.54
Min
0.52

SWK’s P/B Ratio of 1.27 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.

TDG

10.13

Aerospace & Defense Industry

Max
18.61
Q3
9.58
Median
5.45
Q1
3.11
Min
0.94

TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

SWK vs. TDG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolSWKTDG
Price-to-Earnings Ratio (TTM)23.1836.37
Price-to-Sales Ratio (TTM)0.678.54
Price-to-Book Ratio (MRQ)1.2710.13
Price-to-Free Cash Flow Ratio (TTM)6.3341.54