RPM vs PPG

For growth investors, RPM International Inc.

(RPM) is the stronger pick with 0. 5% revenue growth year-over-year, versus 0. 2% for PPG Industries, Inc. (PPG). PPG Industries, Inc. (PPG) offers the better valuation at 16. 1x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate RPM International Inc. (RPM) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, PPG Industries, Inc.

(PPG) is the cheapest at 16. 1x versus RPM International Inc. at 19. 1x. On forward P/E, PPG Industries, Inc. is actually cheaper at 14. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: RPM International Inc. wins at 1. 04x versus PPG Industries, Inc. 's 1. 53x — a reasonable growth-adjusted valuation.

Over the past 5 years, RPM International Inc.

(RPM) delivered a total return of +14. 3%, compared to -30. 9% for PPG Industries, Inc. (PPG). Over 10 years, the gap is even starker: RPM returned +134. 8% versus PPG's +23. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), RPM International Inc.

(RPM) is the lower-risk stock at 1. 01β versus PPG Industries, Inc. 's 1. 07β — meaning PPG is approximately 6% more volatile than RPM relative to the S&P 500.

By revenue growth (latest reported year), RPM International Inc.

(RPM) is pulling ahead at 0. 5% versus 0. 2% for PPG Industries, Inc. (PPG). On earnings-per-share growth, the picture is similar: PPG Industries, Inc. grew EPS 45. 7% year-over-year, compared to 17. 3% for RPM International Inc.. Over a 3-year CAGR, RPM leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

PPG Industries, Inc.

(PPG) is the more profitable company, earning 9. 9% net margin versus 9. 3% for RPM International Inc. — meaning it keeps 9. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PPG leads at 13. 7% versus 12. 3% for RPM. At the gross margin level — before operating expenses — RPM leads at 41. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, RPM International Inc. (RPM) is the more undervalued stock at a PEG of 1. 04x versus PPG Industries, Inc. 's 1. 53x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, PPG Industries, Inc. (PPG) trades at 14. 1x forward P/E versus 18. 7x for RPM International Inc. — 4. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RPM: 19. 8% to $122. 67.

All stocks in this comparison pay dividends.

PPG Industries, Inc. (PPG) offers the highest yield at 2. 5%, versus 1. 9% for RPM International Inc. (RPM).

For long-horizon retirement investors, RPM International Inc.

(RPM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 01), 1. 9% yield, +134. 8% 10Y return). Both have compounded well over 10 years (RPM: +134. 8%, PPG: +23. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Basic Materials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: RPM is a mid-cap quality compounder stock; PPG is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.