Reviewing Snap-On (SNA) & Its Competitors

Snap-On (NYSE: SNA) is one of 58 publicly-traded companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its competitors? We will compare Snap-On to related companies based on the strength of its institutional ownership, valuation, dividends, profitability, risk, earnings and analyst recommendations.

Profitability

This table compares Snap-On and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap-On 16.22% 20.90% 11.89%
Snap-On Competitors 1.74% 7.18% 4.80%

Insider & Institutional Ownership

93.1% of Snap-On shares are owned by institutional investors. Comparatively, 78.2% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 3.7% of Snap-On shares are owned by insiders. Comparatively, 5.5% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Snap-On and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap-On 0 2 5 0 2.71
Snap-On Competitors 392 1902 1919 36 2.38

Snap-On presently has a consensus price target of $197.00, suggesting a potential upside of 32.16%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 5.59%. Given Snap-On’s stronger consensus rating and higher possible upside, research analysts clearly believe Snap-On is more favorable than its competitors.

Dividends

Snap-On pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Snap-On pays out 29.3% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.6% and pay out 35.6% of their earnings in the form of a dividend. Snap-On has increased its dividend for 7 consecutive years. Snap-On is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Snap-On and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Snap-On $3.83 billion $971.00 million 15.40
Snap-On Competitors $2.17 billion $344.42 million 24.35

Snap-On has higher revenue and earnings than its competitors. Snap-On is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Snap-On has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Snap-On’s competitors have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.

Summary

Snap-On beats its competitors on 11 of the 15 factors compared.

Snap-On Company Profile

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

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