W.W. Grainger, Inc. (GWW) vs QXO, Inc. (QXO)

W.W. Grainger, Inc. and QXO, Inc. are both Industrial Distribution companies. W.W. Grainger, Inc. is the larger, with a market value of $60.1B against $12.8B — 4.7× the size. QXO, Inc. has negative trailing earnings, so its P/E is not meaningful; W.W. Grainger, Inc. trades at 31.7×. QXO, Inc. grew revenue faster over the last twelve months: 408.3% against 7.80%. W.W. Grainger, Inc. has the higher net margin (9.92% vs −6.63%) and the higher return on invested capital (27.1% vs −1.53%). Across the 21 metrics below, W.W. Grainger, Inc. leads on 15 and QXO, Inc. on 6.

Valuation

Metric GWW QXO Industrial Distribution median
P/E 31.65 n/m 28.81
P/S 3.11 0.96 1.10
P/B 13.00 1.02 3.59
Price to free cash flow 38.12 67.87 22.50
EV/EBITDA 20.15 36.85 15.13
EV/Sales 3.21 1.31 1.31
Earnings yield 3.16% (7.24%) 3.16%
Free cash flow yield 2.62% 1.47% 3.85%

Profitability

Metric GWW QXO Industrial Distribution median
Gross margin 39.40% 24.03% 30.34%
Operating margin 14.57% (3.40%) 8.06%
Net margin 9.92% (6.63%) 4.95%
Free cash flow margin 8.17% 1.43% 4.67%
Return on equity 43.51% (7.22%) 14.29%
Return on assets 20.16% (3.30%) 5.30%
Return on invested capital 27.09% (1.53%) 8.13%

Growth

Metric GWW QXO Industrial Distribution median
Revenue growth (TTM) 7.80% 408.30% 7.80%
EPS growth (last fiscal year) (8.55%) (472.73%) —
Revenue growth, 5-year CAGR 8.75% 177.98% 9.01%
Net income growth, 5-year CAGR 19.67% 0.00% 0.99%

Health

Metric GWW QXO Industrial Distribution median
Debt to equity 0.53 0.59 0.53
Current ratio 2.81 4.11 2.47
Net debt to EBITDA 0.69 4.52 1.17

Dividend

Metric GWW QXO Industrial Distribution median
Dividend yield 0.83% — 1.54%
Payout ratio 0.20 0.00 0.00

Size

Metric GWW QXO Industrial Distribution median
Market cap 60.08b 12.75b 5.60b

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