PPG Industries vs Sherwin-Williams Which Performs Better?

PPG Industries and Sherwin-Williams are two major companies in the paint and coatings industry, competing for market share and investor interest. PPG Industries, a global supplier of paints, coatings, and specialty materials, has a strong track record of innovation and growth. On the other hand, Sherwin-Williams, known for its diverse product portfolio and strong brand presence, has also been a key player in the industry. Investors often compare the performance and financial health of these two companies to make informed decisions on their stock investments.

PPG Industries or Sherwin-Williams?

When comparing PPG Industries 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 PPG Industries 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. PPG Industries has a dividend yield of 1.57%, 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. PPG Industries reports a 5-year dividend growth of 6.43% year and a payout ratio of 41.52%. 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 PPG Industries P/E ratio at 19.78 and Sherwin-Williams's P/E ratio at 38.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PPG Industries P/B ratio is 3.77 while Sherwin-Williams's P/B ratio is 23.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PPG Industries has seen a 5-year revenue growth of 0.23%, while Sherwin-Williams's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PPG Industries's ROE at 18.97% 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 $125.53 for PPG Industries and $386.76 for Sherwin-Williams. Over the past year, PPG Industries's prices ranged from $118.07 to $151.16, with a yearly change of 28.03%. Sherwin-Williams's prices fluctuated between $252.75 and $392.57, with a yearly change of 55.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.