Comparing Snap-on (NYSE:SNA) and Rectitude (NASDAQ:RECT)

Snap-on (NYSE:SNA) and Rectitude (NASDAQ:RECT) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares Snap-on and Rectitude”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap-on	$4.71 billion	3.71	$1.01 billion	$19.43	17.10
Rectitude	$41.35 million	2.44	$2.49 million	N/A	N/A

Snap-on has higher revenue and earnings than Rectitude.

Insider & Institutional Ownership

84.9% of Snap-on shares are owned by institutional investors. 4.1% of Snap-on shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Snap-on and Rectitude’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap-on	22.13%	19.44%	13.24%
Rectitude	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Snap-on and Rectitude, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap-on	1	1	3	0	2.40
Rectitude	0	0	0	0	0.00

Snap-on presently has a consensus price target of $345.40, indicating a potential upside of 3.95%. Given Snap-on’s stronger consensus rating and higher probable upside, research analysts plainly believe Snap-on is more favorable than Rectitude.

Summary

Snap-on beats Rectitude on 11 of the 11 factors compared between the two stocks.

About Snap-on

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company provides hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other related products; power tools, such as cordless, pneumatic, and hydraulic and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. It provides handheld and computer-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; and engineered solutions. In addition, the company offers solutions for the service of vehicles and industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists, as well as after-sales support services and training programs. Further, it provides financing programs to facilitate the sales of its products and support its franchise business. It serves the aviation and aerospace, agriculture, infrastructure construction, government and military, mining, natural resources, power generation, and technical education industries. Snap-on Incorporated was incorporated in 1920 and is headquartered in Kenosha, Wisconsin.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.