WallStSmart

Howmet Aerospace Inc (HWM)vsStanley Black & Decker Inc (SWK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Stanley Black & Decker Inc generates 83% more annual revenue ($15.13B vs $8.25B). HWM leads profitability with a 18.3% profit margin vs 2.7%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.0Quality: 5.0

SWK

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 5.0Value: 6.7Quality: 5.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HWM.

SWKUndervalued (+34.1%)

Margin of Safety

+34.1%

Fair Value

$137.37

Current Price

$75.89

$61.48 discount

UndervaluedFair: $137.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$94.83B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

SWK1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Areas to Watch

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
18.2x4/10

Trading at 18.2x book value

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

SWK4 concerns · Avg: 3.0/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bull Case : SWK

The strongest argument for SWK centers on Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.8x leaves little room for execution misses.

Bear Case : SWK

The primary concerns for SWK are P/E Ratio, Return on Equity, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

HWM profiles as a mature stock while SWK is a value play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.24 — expect wider price swings.

HWM is growing revenue faster at 14.6% — sustainability is the question.

SWK generates stronger free cash flow (883M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 52/100), backed by strong 18.3% margins and 14.6% revenue growth. SWK offers better value entry with a 34.1% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Howmet Aerospace Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

Stanley Black & Decker Inc

INDUSTRIALS · TOOLS & ACCESSORIES · USA

Stanley Black & Decker, Inc., formerly known as The Stanley Works, is a Fortune 500 American manufacturer of industrial tools and household hardware and provider of security products. Headquartered in the greater Hartford city of New Britain, Connecticut, Stanley Black & Decker is the result of the merger of Stanley Works and Black & Decker on March 12, 2010.

Visit Website →

Want to dig deeper into these stocks?