RPM International Inc. (RPM) vs The Sherwin-Williams Company (SHW)

RPM International Inc. and The Sherwin-Williams Company are both Specialty Chemicals companies. The Sherwin-Williams Company is the larger, with a market value of $81.8B against $12.8B — 6.4× the size. RPM International Inc. trades at the lower P/E: 18.4× against 30.6×. RPM International Inc. grew revenue faster over the last twelve months: 5.96% against 5.76%. The Sherwin-Williams Company has the higher net margin (11.0% vs 8.63%) and the higher return on invested capital (16.0% vs 11.2%). Both pay a dividend; RPM International Inc. yields more (2.17% vs 0.95%). Across the 23 metrics below, RPM International Inc. leads on 15 and The Sherwin-Williams Company on 8.

Valuation

Metric RPM SHW Specialty Chemicals median
P/E 18.38 30.58 25.37
P/S 1.59 3.35 1.46
P/B 3.63 21.21 1.84
Price to free cash flow 16.71 25.32 21.16
EV/EBITDA 12.02 19.29 12.82
EV/Sales 1.85 3.83 1.85
Earnings yield 5.44% 3.27% 2.11%
Free cash flow yield 5.98% 3.95% 2.16%

Profitability

Metric RPM SHW Specialty Chemicals median
Gross margin 41.17% 48.98% 29.23%
Operating margin 12.56% 16.43% 3.63%
Net margin 8.63% 11.01% 2.89%
Free cash flow margin 9.50% 13.23% 3.76%
Return on equity 21.04% 65.12% 3.62%
Return on assets 8.50% 10.28% 0.35%
Return on invested capital 11.22% 16.03% 2.75%

Growth

Metric RPM SHW Specialty Chemicals median
Revenue growth (TTM) 5.96% 5.76% 4.51%
EPS growth (last fiscal year) (3.36%) (2.75%) (14.40%)
Revenue growth, 5-year CAGR 5.19% 5.12% 6.30%
Net income growth, 5-year CAGR 5.73% 4.81% 0.00%

Health

Metric RPM SHW Specialty Chemicals median
Debt to equity 0.69 3.13 0.54
Current ratio 1.76 0.73 1.94
Net debt to EBITDA 1.87 2.31 2.03

Dividend

Metric RPM SHW Specialty Chemicals median
Dividend yield 2.17% 0.95% 1.73%
Payout ratio 0.40 0.29 0.41

Size

Metric RPM SHW Specialty Chemicals median
Market cap 12.76b 81.79b 2.41b

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