Asian Paints vs Sherwin-Williams Which Offers More Value?

Asian Paints and Sherwin-Williams are two leading companies in the paint and coatings industry, with a strong international presence and a history of delivering solid financial performance. While Asian Paints is a market leader in the Asian region, Sherwin-Williams dominates the North American market. Both companies have shown resilience and growth potential despite economic challenges and changing consumer preferences. Investors looking to diversify their portfolio in the paint sector may find these stocks worth considering for long-term investment opportunities.

Asian Paints or Sherwin-Williams?

When comparing Asian Paints and Sherwin-Williams, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Asian Paints and Sherwin-Williams.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Asian Paints has a dividend yield of 1.14%, while Sherwin-Williams has a dividend yield of 0.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Asian Paints reports a 5-year dividend growth of 24.29% year and a payout ratio of 0.00%. On the other hand, Sherwin-Williams reports a 5-year dividend growth of -6.79% year and a payout ratio of 27.33%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Asian Paints P/E ratio at 46.64 and Sherwin-Williams's P/E ratio at 37.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Asian Paints P/B ratio is 12.20 while Sherwin-Williams's P/B ratio is 23.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Asian Paints has seen a 5-year revenue growth of 0.85%, while Sherwin-Williams's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asian Paints's ROE at 28.26% and Sherwin-Williams's ROE at 67.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2451.10 for Asian Paints and $383.52 for Sherwin-Williams. Over the past year, Asian Paints's prices ranged from ₹2451.10 to ₹3422.95, with a yearly change of 39.65%. Sherwin-Williams's prices fluctuated between $264.54 and $392.57, with a yearly change of 48.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.