GWW
W.W. Grainger, Inc.
Industrial - Distribution
Market Cap$53.96B
5Y Perf.+266.5%
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Stock Comparison
GWW vs MSM
Revenue, margins, valuation, and 5-year total return — side by side.
MSM
MSC Industrial Direct Co., Inc.
Industrial - Distribution
Market Cap$5.75B
5Y Perf.+48.6%
GWW vs MSM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | GWW | MSM |
|---|---|---|
| Industry | Industrial - Distribution | Industrial - Distribution |
| Market Cap | $53.96B | $5.75B |
| Revenue (TTM) | $17.94B | $3.81B |
| Net Income (TTM) | $1.71B | $205M |
| Gross Margin | 39.1% | 40.7% |
| Operating Margin | 13.9% | 8.4% |
| Forward P/E | 26.0x | 23.7x |
| Total Debt | $3.16B | $539M |
| Cash & Equiv. | $585M | $56M |
GWW vs MSM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
GWW
MSM
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| W.W. Grainger, Inc. (GWW) | 100 | 366.5 | +266.5% |
| MSC Industrial Dire… (MSM) | 100 | 148.6 | +48.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: GWW vs MSM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: GWW leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. MSC Industrial Direct Co., Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
GWW
W.W. Grainger, Inc.
The Growth Play
GWW carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 4.5%, EPS growth -8.6%, 3Y rev CAGR 5.6%
- 416.7% 10Y total return vs MSM's 86.2%
- 4.5% revenue growth vs MSM's -1.3%
Best for: growth exposure and long-term compounding
MSM
MSC Industrial Direct Co., Inc.
The Income Pick
MSM is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 4 yrs, beta 0.86, yield 3.3%
- Lower volatility, beta 0.86, Low D/E 38.6%, current ratio 1.68x
- Beta 0.86, yield 3.3%, current ratio 1.68x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | GWW | 4.5% revenue growth vs MSM's -1.3% |
| Value | MSM | Lower P/E (23.7x vs 26.0x) |
| Quality / Margins | GWW | 9.5% margin vs MSM's 5.4% |
| Stability / Safety | MSM | Beta 0.86 vs GWW's 0.89, lower leverage |
| Dividends | GWW | 0.9% yield, 37-year raise streak, vs MSM's 3.3% |
| Momentum (1Y) | MSM | +37.8% vs GWW's +7.4% |
| Efficiency (ROA) | GWW | 19.0% ROA vs MSM's 8.2%, ROIC 32.1% vs 12.3% |
GWW vs MSM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
GWW vs MSM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLGWWLAGGINGMSM
MSMMSC Industrial Direct…
2leads
GWWW.W. Grainger, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs MSMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
GWW4/6
Valuation MetricsMultiples, price ratios, and targets
MSM6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
GWW6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
GWW4/6
Risk & VolatilityBeta, volatility, and downside exposure
MSM2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
GWW leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GWW is the larger business by revenue, generating $17.9B annually — 4.7x MSM's $3.8B. Profitability is closely matched — net margins range from 9.5% (GWW) to 5.4% (MSM).
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| RevenueTrailing 12 months | $17.9B | $3.8B |
| EBITDAEarnings before interest/tax | $2.7B | $414M |
| Net IncomeAfter-tax profit | $1.7B | $205M |
| Free Cash FlowCash after capex | $1.3B | $167M |
| Gross MarginGross profit ÷ Revenue | +39.1% | +40.7% |
| Operating MarginEBIT ÷ Revenue | +13.9% | +8.4% |
| Net MarginNet income ÷ Revenue | +9.5% | +5.4% |
| FCF MarginFCF ÷ Revenue | +7.4% | +4.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.5% | +4.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.8% | +12.0% |
GWW leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
MSM leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 28.9x trailing earnings, MSM trades at a 10% valuation discount to GWW's 32.1x P/E. On an enterprise value basis, MSM's 15.4x EV/EBITDA is more attractive than GWW's 19.2x.
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| Market CapShares × price | $54.0B | $5.7B |
| Enterprise ValueMkt cap + debt − cash | $56.5B | $6.2B |
| Trailing P/EPrice ÷ TTM EPS | 32.06x | 28.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.01x | 23.69x |
| PEG RatioP/E ÷ EPS growth rate | 1.44x | — |
| EV / EBITDAEnterprise value multiple | 19.20x | 15.43x |
| Price / SalesMarket cap ÷ Revenue | 3.01x | 1.52x |
| Price / BookPrice ÷ Book value/share | 13.15x | 4.12x |
| Price / FCFMarket cap ÷ FCF | 40.54x | 23.86x |
MSM leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
GWW leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
GWW delivers a 41.2% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $15 for MSM. MSM carries lower financial leverage with a 0.39x debt-to-equity ratio, signaling a more conservative balance sheet compared to GWW's 0.76x. On the Piotroski fundamental quality scale (0–9), GWW scores 8/9 vs MSM's 5/9, reflecting strong financial health.
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| ROE (TTM)Return on equity | +41.2% | +14.8% |
| ROA (TTM)Return on assets | +19.0% | +8.2% |
| ROICReturn on invested capital | +32.1% | +12.3% |
| ROCEReturn on capital employed | +39.7% | +17.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 0.76x | 0.39x |
| Net DebtTotal debt minus cash | $2.6B | $483M |
| Cash & Equiv.Liquid assets | $585M | $56M |
| Total DebtShort + long-term debt | $3.2B | $539M |
| Interest CoverageEBIT ÷ Interest expense | 31.00x | 12.56x |
GWW leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
GWW leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GWW five years ago would be worth $25,465 today (with dividends reinvested), compared to $12,864 for MSM. Over the past 12 months, MSM leads with a +37.8% total return vs GWW's +7.4%. The 3-year compound annual growth rate (CAGR) favors GWW at 19.7% vs MSM's 7.6% — a key indicator of consistent wealth creation.
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| YTD ReturnYear-to-date | +13.3% | +22.0% |
| 1-Year ReturnPast 12 months | +7.4% | +37.8% |
| 3-Year ReturnCumulative with dividends | +71.6% | +24.7% |
| 5-Year ReturnCumulative with dividends | +154.7% | +28.6% |
| 10-Year ReturnCumulative with dividends | +416.7% | +86.2% |
| CAGR (3Y)Annualised 3-year return | +19.7% | +7.6% |
GWW leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
MSM leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MSM is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than GWW's 0.89 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSM currently trades 98.0% from its 52-week high vs GWW's 93.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.89x | 0.86x |
| 52-Week HighHighest price in past year | $1218.63 | $105.09 |
| 52-Week LowLowest price in past year | $906.52 | $74.30 |
| % of 52W HighCurrent price vs 52-week peak | +93.1% | +98.0% |
| RSI (14)Momentum oscillator 0–100 | 50.9 | 61.4 |
| Avg Volume (50D)Average daily shares traded | 225K | 594K |
MSM leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — GWW and MSM each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates GWW as "Hold" and MSM as "Hold". Consensus price targets imply 2.0% upside for GWW (target: $1157) vs -5.1% for MSM (target: $98). For income investors, MSM offers the higher dividend yield at 3.29% vs GWW's 0.86%.
| Metric | GWWW.W. Grainger, In… | MSMMSC Industrial Di… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $1157.43 | $97.75 |
| # AnalystsCovering analysts | 38 | 28 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | +3.3% |
| Dividend StreakConsecutive years of raises | 37 | 4 |
| Dividend / ShareAnnual DPS | $9.73 | $3.39 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | +0.7% |
Evenly matched — GWW and MSM each lead in 1 of 2 comparable metrics.
Key Takeaway
GWW leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). MSM leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Best OverallW.W. Grainger, Inc. (GWW)Leads 3 of 6 categories
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GWW vs MSM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is GWW or MSM a better buy right now?
For growth investors, W.
W. Grainger, Inc. (GWW) is the stronger pick with 4. 5% revenue growth year-over-year, versus -1. 3% for MSC Industrial Direct Co. , Inc. (MSM). MSC Industrial Direct Co. , Inc. (MSM) offers the better valuation at 28. 9x trailing P/E (23. 7x forward), making it the more compelling value choice. Analysts rate W. W. Grainger, Inc. (GWW) a "Hold" — based on 38 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.
02Which has the better valuation — GWW or MSM?
On trailing P/E, MSC Industrial Direct Co.
, Inc. (MSM) is the cheapest at 28. 9x versus W. W. Grainger, Inc. at 32. 1x. On forward P/E, MSC Industrial Direct Co. , Inc. is actually cheaper at 23. 7x.
03Which is the better long-term investment — GWW or MSM?
Over the past 5 years, W.
W. Grainger, Inc. (GWW) delivered a total return of +154. 7%, compared to +28. 6% for MSC Industrial Direct Co. , Inc. (MSM). Over 10 years, the gap is even starker: GWW returned +416. 7% versus MSM's +86. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GWW or MSM?
By beta (market sensitivity over 5 years), MSC Industrial Direct Co.
, Inc. (MSM) is the lower-risk stock at 0. 86β versus W. W. Grainger, Inc. 's 0. 89β — meaning GWW is approximately 4% more volatile than MSM relative to the S&P 500. On balance sheet safety, MSC Industrial Direct Co. , Inc. (MSM) carries a lower debt/equity ratio of 39% versus 76% for W. W. Grainger, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — GWW or MSM?
By revenue growth (latest reported year), W.
W. Grainger, Inc. (GWW) is pulling ahead at 4. 5% versus -1. 3% for MSC Industrial Direct Co. , Inc. (MSM). On earnings-per-share growth, the picture is similar: W. W. Grainger, Inc. grew EPS -8. 6% year-over-year, compared to -22. 1% for MSC Industrial Direct Co. , Inc.. Over a 3-year CAGR, GWW leads at 5. 6% 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.
06Which has better profit margins — GWW or MSM?
W.
W. Grainger, Inc. (GWW) is the more profitable company, earning 9. 5% net margin versus 5. 3% for MSC Industrial Direct Co. , Inc. — meaning it keeps 9. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GWW leads at 15. 0% versus 8. 3% for MSM. At the gross margin level — before operating expenses — MSM leads at 40. 8%, 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.
07Is GWW or MSM more undervalued right now?
On forward earnings alone, MSC Industrial Direct Co.
, Inc. (MSM) trades at 23. 7x forward P/E versus 26. 0x for W. W. Grainger, Inc. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GWW: 2. 0% to $1157. 43.
08Which pays a better dividend — GWW or MSM?
All stocks in this comparison pay dividends.
MSC Industrial Direct Co. , Inc. (MSM) offers the highest yield at 3. 3%, versus 0. 9% for W. W. Grainger, Inc. (GWW).
09Is GWW or MSM better for a retirement portfolio?
For long-horizon retirement investors, W.
W. Grainger, Inc. (GWW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 89), 0. 9% yield, +416. 7% 10Y return). Both have compounded well over 10 years (GWW: +416. 7%, MSM: +86. 2%), 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.
10What are the main differences between GWW and MSM?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: GWW is a mid-cap quality compounder stock; MSM is a small-cap income-oriented 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.
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Revenue Growth>
%
(GWW: 4.5% · MSM: 4.0%)Net Margin>
%
(GWW: 9.5% · MSM: 5.4%)P/E Ratio<
x
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