GGG vs FELE

For growth investors, Graco Inc.

(GGG) is the stronger pick with 5. 8% revenue growth year-over-year, versus 5. 4% for Franklin Electric Co. , Inc. (FELE). Graco Inc. (GGG) offers the better valuation at 26. 1x trailing P/E (25. 7x forward), making it the more compelling value choice. Analysts rate Graco Inc. (GGG) a "Hold" — based on 20 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, Graco Inc.

(GGG) is the cheapest at 26. 1x versus Franklin Electric Co. , Inc. at 31. 1x. On forward P/E, Franklin Electric Co. , Inc. is actually cheaper at 22. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Franklin Electric Co. , Inc. wins at 2. 52x versus Graco Inc. 's 2. 59x.

Over the past 5 years, Franklin Electric Co.

, Inc. (FELE) delivered a total return of +21. 2%, compared to +8. 4% for Graco Inc. (GGG). Over 10 years, the gap is even starker: GGG returned +233. 7% versus FELE's +233. 1%. 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), Graco Inc.

(GGG) is the lower-risk stock at 0. 80β versus Franklin Electric Co. , Inc. 's 0. 92β — meaning FELE is approximately 14% more volatile than GGG relative to the S&P 500. On balance sheet safety, Graco Inc. (GGG) carries a lower debt/equity ratio of 2% versus 21% for Franklin Electric Co. , Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Graco Inc.

(GGG) is pulling ahead at 5. 8% versus 5. 4% for Franklin Electric Co. , Inc. (FELE). On earnings-per-share growth, the picture is similar: Graco Inc. grew EPS 9. 2% year-over-year, compared to -15. 8% for Franklin Electric Co. , Inc.. Over a 3-year CAGR, GGG leads at 1. 4% 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.

Graco Inc.

(GGG) is the more profitable company, earning 23. 3% net margin versus 6. 9% for Franklin Electric Co. , Inc. — meaning it keeps 23. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GGG leads at 27. 3% versus 12. 7% for FELE. At the gross margin level — before operating expenses — GGG leads at 52. 5%, 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, Franklin Electric Co. , Inc. (FELE) is the more undervalued stock at a PEG of 2. 52x versus Graco Inc. 's 2. 59x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Franklin Electric Co. , Inc. (FELE) trades at 22. 0x forward P/E versus 25. 7x for Graco Inc. — 3. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GGG: 19. 1% to $95. 67.

All stocks in this comparison pay dividends.

Graco Inc. (GGG) offers the highest yield at 1. 3%, versus 1. 1% for Franklin Electric Co. , Inc. (FELE).

For long-horizon retirement investors, Graco Inc.

(GGG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 80), 1. 3% yield, +233. 7% 10Y return). Both have compounded well over 10 years (GGG: +233. 7%, FELE: +233. 1%), 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 Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.