Which stock will give more? Hartford Financial Services Group, Inc. (The) (HIG) or Stanley Black & Decker, Inc. (SWK)

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The shares of Hartford Financial Services Group, Inc. (The) (NYSE:HIG) and Stanley Black & Decker, Inc. (NYSE:SWK) were among the active stocks of the last trading sessions. Hartford Financial Services Group, Inc. (The) (NYSE:HIG) declined to -0.49% closing at the price of $46.53 whereas the shares of Stanley Black & Decker, Inc. (NYSE:SWK) declined -2.52% with the decrease of -3.12 points closing at the price of $120.45. Hartford Financial Services Group, Inc. (The) has currently decrease -10.57% in its stock over the period of 6-months while its rival Stanley Black & Decker, Inc. subtracted -16.48% in the previous 6-months.

Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.

Returns and Profitability

Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.

The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Hartford Financial Services Group, Inc. (The) (NYSE:HIG) is 5% while the ROI of Stanley Black & Decker, Inc. (NYSE:SWK) is 11.3%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, HIG’s EBITDA Margin is 7.49 whereas SWK’s is 11.26.

Both the profitability ratios suggest that Stanley Black & Decker, Inc. (NYSE:SWK) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

Hartford Financial Services Group, Inc. (The) (NYSE:HIG) reported $1.13/share EPS for the previous quarter where analysts were predicting an EPS to be $1.03/share Thus beating the analyst Estimates with a Surprise Factor of 9.7 Percent. While, Stanley Black & Decker, Inc. (NYSE:SWK) reported EPS of $2.57/share in the last quarter. The analysts projected EPS of $2.02/share depicting a Surprise of 27.2 Percent.

Taking a look at Earnings per Share, Stanley Black & Decker, Inc. tends to be beating the analyst estimates more than Hartford Financial Services Group, Inc. (The). so SWK is more profitable than HIG.

Technical Analysis of Hartford Financial Services Group, Inc. (The) & Stanley Black & Decker, Inc.

Moving average convergence divergence (MACD) shows that Hartford Financial Services Group, Inc. (The) (NYSE:HIG) is on a PRICE RELATIVITY trend While Stanley Black & Decker, Inc. (NYSE:SWK) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Hartford Financial Services Group, Inc. (The) was in BEARISH territory and Stanley Black & Decker, Inc. was in BEARISH territory.

HIG’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While SWK’s candle is BEARISH with HIGH.

EPS Growth Rate: HIG’s 19.52% versus SWK’s 10.93%

Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Hartford Financial Services Group, Inc. (The) (NYSE:HIG) is predicted at 19.52% while Stanley Black & Decker, Inc. (NYSE:SWK) stands at 10.93%. These numbers suggest that HIG is more suitable investment in terms of EPS growth rate.

Financial Risk and Liquidity Concerns

The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of HIG stands at 0 while SWK is at 0.9 whereas the debt ratio of the prior is 0.37 while the debt ratio of the later is 0.54.

The values of the both ratios suggest that SWK is more suitable investment when the liquidity and risk is the main concern.

Analyst Recommendations

While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.4 for HIG and 2.2 for SWK which means HIG has Hold rating whereas SWK has Hold rating.

Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for HIG is $59.27 which is 21.49% of its current price while SWK has price target of 174.08 which is 30.81% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

HIG currently has price to earning P/E ratio of 12.7 whereas SWK has 17.29 while the forward P/E ratio for the prior stands at 9.33 and for the later it depicts the value of 12.87.

The price to Book P/B for HIG is 1.33, Price to Sale is at 0.92 and for SWK these ratios stand at 2.43 and 1.37.