Ecolab Inc. (ECL) vs The Sherwin-Williams Company (SHW)

Ecolab Inc. and The Sherwin-Williams Company are both Specialty Chemicals companies. Ecolab Inc. and The Sherwin-Williams Company are of similar size ($85.8B and $84.3B). The Sherwin-Williams Company trades at the lower P/E: 31.8× against 41.3×. Ecolab Inc. grew revenue faster over the last twelve months: 9.33% against 7.03%. Ecolab Inc. has the higher net margin (12.0% vs 10.7%) and the lower return on invested capital (7.91% vs 16.3%). Both pay a dividend; Ecolab Inc. yields more (0.95% vs 0.91%). Across the 23 metrics below, The Sherwin-Williams Company leads on 13 and Ecolab Inc. on 10.

Valuation

Metric ECL SHW Specialty Chemicals median
P/E 41.31 31.84 24.46
P/S 4.94 3.38 1.64
P/B 8.21 21.18 1.88
Price to free cash flow 47.60 27.22 19.15
EV/EBITDA 24.71 19.54 12.87
EV/Sales 5.66 3.84 1.88
Earnings yield 2.42% 3.14% 2.42%
Free cash flow yield 2.10% 3.67% 2.25%

Profitability

Metric ECL SHW Specialty Chemicals median
Gross margin 43.94% 48.60% 27.84%
Operating margin 16.71% 16.20% 5.64%
Net margin 11.99% 10.74% 4.19%
Free cash flow margin 10.38% 12.42% 3.49%
Return on equity 20.61% 63.70% 2.34%
Return on assets 7.57% 10.07% 0.45%
Return on invested capital 7.91% 16.26% 3.21%

Growth

Metric ECL SHW Specialty Chemicals median
Revenue growth (TTM) 9.33% 7.03% 6.39%
EPS growth (last fiscal year) (1.22%) (2.75%) (9.77%)
Revenue growth, 5-year CAGR 6.40% 5.12% 6.33%
Net income growth, 5-year CAGR 0.00% 4.81% 0.00%

Health

Metric ECL SHW Specialty Chemicals median
Debt to equity 1.26 2.97 0.59
Current ratio 1.11 0.71 2.28
Net debt to EBITDA 2.04 2.31 2.03

Dividend

Metric ECL SHW Specialty Chemicals median
Dividend yield 0.95% 0.91% 1.80%
Payout ratio 0.40 0.29 0.40

Size

Metric ECL SHW Specialty Chemicals median
Market cap 85.78b 84.32b 2.08b

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