Sherwin-Williams vs PPG Industries Which Is Stronger?

Sherwin-Williams and PPG Industries are both leading companies in the paints and coatings industry, known for their high-quality products and strong market presence. Sherwin-Williams has shown consistent growth over the years, with a focus on innovation and expanding its product offerings. On the other hand, PPG Industries has a solid financial performance and a diversified portfolio of products. Both companies have weathered economic downturns and have proven to be resilient in the face of challenges. Investors looking to invest in the paints and coatings industry may find these two stocks worth considering for their portfolio.

Sherwin-Williams or PPG Industries?

When comparing Sherwin-Williams and PPG Industries, 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 PPG Industries.

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 0.77%, while PPG Industries has a dividend yield of 2.12%. 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, PPG Industries reports a 5-year dividend growth of 6.43% year and a payout ratio of 41.52%.

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 36.41 and PPG Industries's P/E ratio at 19.69. 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 22.41 while PPG Industries's P/B ratio is 3.76.

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 PPG Industries's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sherwin-Williams's ROE at 67.63% and PPG Industries's ROE at 18.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $370.61 for Sherwin-Williams and $123.51 for PPG Industries. Over the past year, Sherwin-Williams's prices ranged from $282.09 to $400.42, with a yearly change of 41.95%. PPG Industries's prices fluctuated between $118.07 and $151.16, with a yearly change of 28.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.