Graco vs Wagners

Graco and Wagner are two well-known companies in the industrial equipment sector, particularly known for their expertise in manufacturing paint sprayers. Both companies have a strong reputation for producing high-quality products that are used in a variety of applications, from residential to commercial settings. Investors looking to capitalize on the growing demand for these products may consider investing in Graco or Wagner stocks. This comparison explores the performance, growth potential, and key factors to consider when evaluating these two industry leaders.

Graco or Wagners?

When comparing Graco and Wagners, 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 Graco and Wagners.

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. Graco has a dividend yield of 0.89%, while Wagners has a dividend yield of 2.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Graco reports a 5-year dividend growth of 12.14% year and a payout ratio of 33.18%. On the other hand, Wagners reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Graco P/E ratio at 29.33 and Wagners's P/E ratio at 19.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Graco P/B ratio is 6.04 while Wagners's P/B ratio is 1.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Graco has seen a 5-year revenue growth of 0.32%, while Wagners's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Graco's ROE at 21.74% and Wagners's ROE at 7.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $86.38 for Graco and A$1.01 for Wagners. Over the past year, Graco's prices ranged from $69.78 to $94.77, with a yearly change of 35.81%. Wagners's prices fluctuated between A$0.70 and A$1.05, with a yearly change of 48.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.