Seek Returns logo

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

Updated on

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

Company Profile

SymbolSWKTXT
Company NameStanley Black & Decker, Inc.Textron Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryAerospace & Defense
Market Capitalization11.72 billion USD14.59 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980February 21, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SWK and TXT 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. TXT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolSWKTXT
5-Day Price Return3.57%3.03%
13-Week Price Return12.66%9.61%
26-Week Price Return-13.88%13.20%
52-Week Price Return-24.90%-9.07%
Month-to-Date Return11.96%5.30%
Year-to-Date Return-5.67%7.06%
10-Day Avg. Volume2.14M1.09M
3-Month Avg. Volume2.51M1.53M
3-Month Volatility36.00%23.09%
Beta1.211.14

Profitability

Return on Equity (TTM)

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.

TXT

11.31%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

TXT’s Return on Equity of 11.31% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

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.

TXT

5.80%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

TXT’s Net Profit Margin of 5.80% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

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.

TXT

5.50%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

TXT’s Operating Profit Margin of 5.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolSWKTXT
Return on Equity (TTM)6.59%11.31%
Return on Assets (TTM)2.63%4.85%
Net Profit Margin (TTM)3.85%5.80%
Operating Profit Margin (TTM)4.70%5.50%
Gross Profit Margin (TTM)30.03%19.73%

Financial Strength

Current Ratio (MRQ)

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.

TXT

1.70

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

TXT’s Current Ratio of 1.70 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

SWK vs. TXT: 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
0.44
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.

TXT

0.50

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SWK vs. TXT: 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
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.

TXT

10.72

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolSWKTXT
Current Ratio (MRQ)1.041.70
Quick Ratio (MRQ)0.290.71
Debt-to-Equity Ratio (MRQ)0.740.50
Interest Coverage Ratio (TTM)1.7510.72

Growth

Revenue Growth

SWK vs. TXT: 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. TXT: 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

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.

TXT

0.08%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

TXT’s Dividend Yield of 0.08% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

TXT

1.85%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

TXT’s Dividend Payout Ratio of 1.85% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolSWKTXT
Dividend Yield (TTM)7.39%0.08%
Dividend Payout Ratio (TTM)148.38%1.85%

Valuation

Price-to-Earnings Ratio (TTM)

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.

TXT

17.34

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.34 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

SWK

0.77

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.

TXT

1.01

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.01 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.

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

Price-to-Book Ratio (MRQ)

SWK

1.16

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.

TXT

1.95

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

TXT’s P/B Ratio of 1.95 is in the lower quartile for the Aerospace & Defense 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 vs. TXT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolSWKTXT
Price-to-Earnings Ratio (TTM)20.0817.34
Price-to-Sales Ratio (TTM)0.771.01
Price-to-Book Ratio (MRQ)1.161.95
Price-to-Free Cash Flow Ratio (TTM)7.0819.15