Sherwin-Williams vs Asian Paints

Sherwin-Williams and Asian Paints are two major players in the global paint and coatings industry. Both companies have a strong track record of growth and profitability, making them attractive investments for those looking to capitalize on the increasing demand for paint products worldwide. While Sherwin-Williams is a well-known brand in North America and Europe, Asian Paints has a dominant presence in the rapidly growing markets of Asia. Investors should carefully analyze the financial performance and market positioning of both companies before making an investment decision.

Sherwin-Williams or Asian Paints?

When comparing Sherwin-Williams and Asian Paints, 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 Sherwin-Williams and Asian Paints.

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. Sherwin-Williams has a dividend yield of 0.71%, while Asian Paints has a dividend yield of 1.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sherwin-Williams reports a 5-year dividend growth of -6.79% year and a payout ratio of 26.74%. On the other hand, Asian Paints reports a 5-year dividend growth of 24.29% 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 Sherwin-Williams P/E ratio at 38.81 and Asian Paints's P/E ratio at 57.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sherwin-Williams P/B ratio is 25.99 while Asian Paints's P/B ratio is 15.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sherwin-Williams has seen a 5-year revenue growth of 0.44%, while Asian Paints's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sherwin-Williams's ROE at 68.14% and Asian Paints's ROE at 28.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $384.56 for Sherwin-Williams and ₹3047.65 for Asian Paints. Over the past year, Sherwin-Williams's prices ranged from $232.06 to $392.57, with a yearly change of 69.17%. Asian Paints's prices fluctuated between ₹2670.10 and ₹3422.95, with a yearly change of 28.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.