PPG Industries, Inc. (PPG) vs The Sherwin-Williams Company (SHW)

PPG Industries, Inc. and The Sherwin-Williams Company are both Specialty Chemicals companies. The Sherwin-Williams Company is the larger, with a market value of $78.1B against $23.6B — 3.3× the size. PPG Industries, Inc. trades at the lower P/E: 15.3× against 30.0×. The Sherwin-Williams Company grew revenue faster over the last twelve months: 5.76% against 4.99%. The Sherwin-Williams Company has the higher net margin (11.0% vs 9.57%) and the higher return on invested capital (16.0% vs 9.87%). Both pay a dividend; PPG Industries, Inc. yields more (1.92% vs 0.90%). Across the 23 metrics below, PPG Industries, Inc. leads on 14 and The Sherwin-Williams Company on 9.

Valuation

Metric PPG SHW Specialty Chemicals median
P/E 15.32 30.03 24.83
P/S 1.46 3.29 1.46
P/B 2.79 20.82 1.76
Price to free cash flow 17.04 24.85 19.84
EV/EBITDA 10.72 18.98 13.18
EV/Sales 1.78 3.77 1.84
Earnings yield 6.53% 3.33% 2.11%
Free cash flow yield 5.87% 4.02% 2.29%

Profitability

Metric PPG SHW Specialty Chemicals median
Gross margin 40.90% 48.98% 29.23%
Operating margin 13.35% 16.43% 3.63%
Net margin 9.57% 11.01% 2.89%
Free cash flow margin 8.57% 13.23% 3.78%
Return on equity 19.25% 65.12% 3.62%
Return on assets 7.04% 10.28% 0.35%
Return on invested capital 9.87% 16.03% 2.75%

Growth

Metric PPG SHW Specialty Chemicals median
Revenue growth (TTM) 4.99% 5.76% 4.51%
EPS growth (last fiscal year) 46.11% (2.75%) —
Revenue growth, 5-year CAGR 2.79% 5.12% 6.30%
Net income growth, 5-year CAGR 8.28% 4.81% 0.00%

Health

Metric PPG SHW Specialty Chemicals median
Debt to equity 0.80 3.13 0.54
Current ratio 1.58 0.73 1.94
Net debt to EBITDA 1.89 2.31 2.03

Dividend

Metric PPG SHW Specialty Chemicals median
Dividend yield 1.92% 0.90% 1.69%
Payout ratio 0.45 0.27 0.25

Size

Metric PPG SHW Specialty Chemicals median
Market cap 23.63b 78.05b 2.43b

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