MATX vs CAT vs GWW vs DE

For growth investors, W.

W. Grainger, Inc. (GWW) is the stronger pick with 4. 5% revenue growth year-over-year, versus -2. 3% for Matson, Inc. (MATX). Matson, Inc. (MATX) offers the better valuation at 13. 0x trailing P/E (13. 4x forward), making it the more compelling value choice. Analysts rate Matson, Inc. (MATX) a "Buy" — based on 11 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, Matson, Inc.

(MATX) is the cheapest at 13. 0x versus Caterpillar Inc. at 47. 6x. On forward P/E, Matson, Inc. is actually cheaper at 13. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Matson, Inc. wins at 0. 52x versus Deere & Company's 1. 99x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +282. 5%, compared to +54. 1% for Deere & Company (DE). Over 10 years, the gap is even starker: CAT returned +1228% versus GWW's +463. 0%. 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), Deere & Company (DE) is the lower-risk stock at 0.

56β versus Matson, Inc. 's 1. 76β — meaning MATX is approximately 212% more volatile than DE relative to the S&P 500. On balance sheet safety, Matson, Inc. (MATX) carries a lower debt/equity ratio of 26% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), W.

W. Grainger, Inc. (GWW) is pulling ahead at 4. 5% versus -2. 3% for Matson, Inc. (MATX). On earnings-per-share growth, the picture is similar: Deere & Company grew EPS 0. 0% year-over-year, compared to -14. 6% for Caterpillar 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.

Matson, Inc.

(MATX) is the more profitable company, earning 13. 3% net margin versus 9. 5% for W. W. Grainger, Inc. — meaning it keeps 13. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 14. 0% for MATX. At the gross margin level — before operating expenses — GWW leads at 39. 1%, 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, Matson, Inc. (MATX) is the more undervalued stock at a PEG of 0. 52x versus Deere & Company's 1. 99x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Matson, Inc. (MATX) trades at 13. 4x forward P/E versus 38. 8x for Caterpillar Inc. — 25. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 17. 3% to $680. 54.

All stocks in this comparison pay dividends.

Deere & Company (DE) offers the highest yield at 1. 1%, versus 0. 7% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, Deere & Company (DE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

56), 1. 1% yield, +671. 0% 10Y return). Matson, Inc. (MATX) carries a higher beta of 1. 76 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DE: +671. 0%, MATX: +476. 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.

In terms of investment character: MATX is a small-cap deep-value stock; CAT is a large-cap quality compounder stock; GWW is a mid-cap quality compounder stock; DE is a mid-cap quality compounder 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.