Snap-on (NYSE: SNA) and Lifetime Brands (NASDAQ:LCUT) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Snap-on pays an annual dividend of $3.28 per share and has a dividend yield of 2.3%. Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Snap-on pays out 32.4% of its earnings in the form of a dividend. Snap-on has increased its dividend for 8 consecutive years. Snap-on is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Snap-on has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Lifetime Brands has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Earnings and Valuation
This table compares Snap-on and Lifetime Brands’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Snap-on||$3.69 billion||2.21||$557.70 million||$10.12||14.19|
|Lifetime Brands||$579.48 million||0.42||$2.15 million||N/A||N/A|
Snap-on has higher revenue and earnings than Lifetime Brands.
This is a breakdown of current recommendations and price targets for Snap-on and Lifetime Brands, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Snap-on presently has a consensus price target of $193.00, suggesting a potential upside of 34.36%. Given Snap-on’s higher possible upside, analysts plainly believe Snap-on is more favorable than Lifetime Brands.
This table compares Snap-on and Lifetime Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
99.4% of Snap-on shares are owned by institutional investors. Comparatively, 48.8% of Lifetime Brands shares are owned by institutional investors. 4.0% of Snap-on shares are owned by company insiders. Comparatively, 21.3% of Lifetime Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Snap-on beats Lifetime Brands on 11 of the 16 factors compared between the two stocks.
Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. The company operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. It offers hand tools, including wrenches, sockets, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other products; power tools, such as cordless, pneumatic, hydraulic, and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. The company also provides handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics. In addition, it offers solutions for the service of vehicles and industrial equipment, such as wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane systems, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists. Further, the company provides financing programs to facilitate the sales of its products and support its franchise business. It serves aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education industries, as well as vehicle dealerships and repair centers. Snap-on Incorporated was founded in 1920 and is headquartered in Kenosha, Wisconsin.
About Lifetime Brands
Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally. The company operates through three segments: U.S. Wholesale, International, and Retail Direct. It offers kitchenware products, including kitchen tools and gadgets, cutlery, cutting boards, shears, cookware, pantry ware, spice racks, and bakeware, as well as novelty kitchen tools, tableware accessories, party goods, personal accessories, and other products; and tableware products comprising dinnerware, stemware, flatware, and giftware. The company also provides home solutions, which comprise other products that are used in the home, such as thermal beverageware, food storage, and home décor, as well as neoprene travel products consisting of bags, totes, cases, and sleeves; and sterling silver and pewter giftware products. In addition, it owns or licenses various brands, including Farberware, Mikasa, KitchenAid, Pfaltzgraff, KitchenCraft, Fitz and Floyd, Sabatier, Kamenstein, BUILT NY, MasterClass, Fred, Amco Houseworks, Chicago Metallic, Swing-A-Way, and Copco brands; and offers tableware products under the La Cafetière and Randwyck private label brands. The company serves mass merchants, specialty stores, national chains, department stores, warehouse clubs, supermarkets, off-price retailers, pharmacies, home and garden centers, and Internet retailers, as well as directly to consumers through its Pfaltzgraff, Mikasa, Fred and Friends, Built NY, Fitz and Floyd, Housewares Deals, and Lifetime Sterling Websites. Lifetime Brands, Inc. was founded in 1945 and is headquartered in Garden City, New York.
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