Sherwin-Williams vs Lowe's Which Is More Attractive?

Sherwin-Williams and Lowe's are two well-known companies in the home improvement industry, both with strong presences in the market. Sherwin-Williams, a leading manufacturer of paints and coatings, has consistently shown growth in its stock value over the years. On the other hand, Lowe's, a retail giant specializing in home improvement products, has also demonstrated steady performance in the stock market. Investors often compare the two companies' stocks to determine which may be a better investment option for their portfolios.

Sherwin-Williams or Lowe's?

When comparing Sherwin-Williams and Lowe's, 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 Lowe's.

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 0.78%, while Lowe's has a dividend yield of 1.71%. 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 27.33%. On the other hand, Lowe's reports a 5-year dividend growth of 19.29% year and a payout ratio of 37.18%.

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 35.95 and Lowe's's P/E ratio at 21.80. 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 22.12 while Lowe's's P/B ratio is -11.13.

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 Lowe's's is 0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sherwin-Williams's ROE at 67.63% and Lowe's's ROE at -48.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $366.33 for Sherwin-Williams and $263.05 for Lowe's. Over the past year, Sherwin-Williams's prices ranged from $282.09 to $400.42, with a yearly change of 41.95%. Lowe's's prices fluctuated between $209.55 and $287.01, with a yearly change of 36.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.