Lowe's vs Sherwin-Williams Which Performs Better?

Lowe's and Sherwin-Williams are two well-known companies in the home improvement and paint industries, respectively. Both companies have seen significant growth in their stocks in recent years, with Lowe's benefiting from an increase in demand for home improvement products and Sherwin-Williams dominating the paint market with its high-quality products. Investors interested in these sectors may want to compare the performance of Lowe's and Sherwin-Williams stocks to make informed investment decisions.

Lowe's or Sherwin-Williams?

When comparing Lowe's 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 Lowe's 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. Lowe's has a dividend yield of 1.71%, while Sherwin-Williams has a dividend yield of 0.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lowe's reports a 5-year dividend growth of 19.29% year and a payout ratio of 37.18%. 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 Lowe's P/E ratio at 21.80 and Sherwin-Williams's P/E ratio at 35.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lowe's P/B ratio is -11.13 while Sherwin-Williams's P/B ratio is 22.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lowe's has seen a 5-year revenue growth of 0.69%, while Sherwin-Williams's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lowe's's ROE at -48.23% 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 $263.05 for Lowe's and $366.33 for Sherwin-Williams. Over the past year, Lowe's's prices ranged from $209.55 to $287.01, with a yearly change of 36.96%. Sherwin-Williams's prices fluctuated between $282.09 and $400.42, with a yearly change of 41.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.