Chemicals - Specialty
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PPG vs ECL
Revenue, margins, valuation, and 5-year total return — side by side.
Chemicals - Specialty
PPG vs ECL — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| Market Cap | $24.96B | $74.40B |
| Revenue (TTM) | $16.12B | $16.08B |
| Net Income (TTM) | $1.58B | $2.08B |
| Gross Margin | 40.6% | 44.5% |
| Operating Margin | 12.8% | 17.7% |
| Forward P/E | 14.1x | 31.5x |
| Total Debt | $7.45B | $9.43B |
| Cash & Equiv. | $2.16B | $646M |
PPG vs ECL — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| PPG Industries, Inc. (PPG) | 100 | 109.7 | +9.7% |
| Ecolab Inc. (ECL) | 100 | 123.9 | +23.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PPG vs ECL
Each card shows where this stock fits in a portfolio — not just who wins on paper.
PPG is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 15 yrs, beta 1.07, yield 2.5%
- Beta 1.07, yield 2.5%, current ratio 1.62x
- Lower P/E (14.1x vs 31.5x)
ECL carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 2.2%, EPS growth -1.2%, 3Y rev CAGR 4.3%
- 142.1% 10Y total return vs PPG's 23.5%
- Lower volatility, beta 0.63, Low D/E 96.2%, current ratio 1.08x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.2% revenue growth vs PPG's 0.2% | |
| Value | Lower P/E (14.1x vs 31.5x) | |
| Quality / Margins | 12.9% margin vs PPG's 9.8% | |
| Stability / Safety | Beta 0.63 vs PPG's 1.07 | |
| Dividends | 2.5% yield, 15-year raise streak, vs ECL's 1.0% | |
| Momentum (1Y) | +5.4% vs PPG's +5.3% | |
| Efficiency (ROA) | 8.8% ROA vs PPG's 8.5%, ROIC 12.7% vs 23.5% |
PPG vs ECL — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
PPG vs ECL — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
ECL leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PPG and ECL operate at a comparable scale, with $16.1B and $16.1B in trailing revenue. Profitability is closely matched — net margins range from 12.9% (ECL) to 9.8% (PPG).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $16.1B | $16.1B |
| EBITDAEarnings before interest/tax | $2.6B | $3.5B |
| Net IncomeAfter-tax profit | $1.6B | $2.1B |
| Free Cash FlowCash after capex | $1.2B | $1.9B |
| Gross MarginGross profit ÷ Revenue | +40.6% | +44.5% |
| Operating MarginEBIT ÷ Revenue | +12.8% | +17.7% |
| Net MarginNet income ÷ Revenue | +9.8% | +12.9% |
| FCF MarginFCF ÷ Revenue | +7.6% | +11.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.7% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +4.3% | +19.3% |
Valuation Metrics
PPG leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 16.1x trailing earnings, PPG trades at a 55% valuation discount to ECL's 36.2x P/E. On an enterprise value basis, PPG's 11.2x EV/EBITDA is more attractive than ECL's 23.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $25.0B | $74.4B |
| Enterprise ValueMkt cap + debt − cash | $30.2B | $83.2B |
| Trailing P/EPrice ÷ TTM EPS | 16.12x | 36.18x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.15x | 31.46x |
| PEG RatioP/E ÷ EPS growth rate | 1.75x | — |
| EV / EBITDAEnterprise value multiple | 11.21x | 23.20x |
| Price / SalesMarket cap ÷ Revenue | 1.57x | 4.63x |
| Price / BookPrice ÷ Book value/share | — | 7.66x |
| Price / FCFMarket cap ÷ FCF | 21.46x | 39.07x |
Profitability & Efficiency
PPG leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
PPG delivers a 31.1% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $22 for ECL. On the Piotroski fundamental quality scale (0–9), PPG scores 7/9 vs ECL's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +31.1% | +22.0% |
| ROA (TTM)Return on assets | +8.5% | +8.8% |
| ROICReturn on invested capital | +23.5% | +12.7% |
| ROCEReturn on capital employed | +24.8% | +15.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | — | 0.96x |
| Net DebtTotal debt minus cash | $5.3B | $8.8B |
| Cash & Equiv.Liquid assets | $2.2B | $646M |
| Total DebtShort + long-term debt | $7.4B | $9.4B |
| Interest CoverageEBIT ÷ Interest expense | 9.16x | 9.82x |
Total Returns (Dividends Reinvested)
ECL leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ECL five years ago would be worth $12,030 today (with dividends reinvested), compared to $6,905 for PPG. Over the past 12 months, ECL leads with a +5.4% total return vs PPG's +5.3%. The 3-year compound annual growth rate (CAGR) favors ECL at 16.2% vs PPG's -4.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +7.6% | +0.6% |
| 1-Year ReturnPast 12 months | +5.3% | +5.4% |
| 3-Year ReturnCumulative with dividends | -13.8% | +56.7% |
| 5-Year ReturnCumulative with dividends | -30.9% | +20.3% |
| 10-Year ReturnCumulative with dividends | +23.5% | +142.1% |
| CAGR (3Y)Annualised 3-year return | -4.8% | +16.2% |
Risk & Volatility
ECL leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ECL is the less volatile stock with a 0.63 beta — it tends to amplify market swings less than PPG's 1.07 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 0.63x |
| 52-Week HighHighest price in past year | $133.43 | $309.27 |
| 52-Week LowLowest price in past year | $93.39 | $249.04 |
| % of 52W HighCurrent price vs 52-week peak | +83.6% | +85.2% |
| RSI (14)Momentum oscillator 0–100 | 46.3 | 38.4 |
| Avg Volume (50D)Average daily shares traded | 2.0M | 1.4M |
Analyst Outlook
PPG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PPG as "Buy" and ECL as "Buy". Consensus price targets imply 24.2% upside for ECL (target: $327) vs 14.5% for PPG (target: $128). For income investors, PPG offers the higher dividend yield at 2.48% vs ECL's 1.00%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $127.67 | $327.11 |
| # AnalystsCovering analysts | 38 | 37 |
| Dividend YieldAnnual dividend ÷ price | +2.5% | +1.0% |
| Dividend StreakConsecutive years of raises | 15 | 12 |
| Dividend / ShareAnnual DPS | $2.77 | $2.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.2% | +1.1% |
ECL leads in 3 of 6 categories (Income & Cash Flow, Total Returns). PPG leads in 3 (Valuation Metrics, Profitability & Efficiency).
PPG vs ECL: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PPG or ECL a better buy right now?
For growth investors, Ecolab Inc.
(ECL) is the stronger pick with 2. 2% 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 PPG Industries, Inc. (PPG) a "Buy" — 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 — PPG or ECL?
On trailing P/E, PPG Industries, Inc.
(PPG) is the cheapest at 16. 1x versus Ecolab Inc. at 36. 2x. On forward P/E, PPG Industries, Inc. is actually cheaper at 14. 1x.
03Which is the better long-term investment — PPG or ECL?
Over the past 5 years, Ecolab Inc.
(ECL) delivered a total return of +20. 3%, compared to -30. 9% for PPG Industries, Inc. (PPG). Over 10 years, the gap is even starker: ECL returned +142. 1% 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.
04Which is safer — PPG or ECL?
By beta (market sensitivity over 5 years), Ecolab Inc.
(ECL) is the lower-risk stock at 0. 63β versus PPG Industries, Inc. 's 1. 07β — meaning PPG is approximately 71% more volatile than ECL relative to the S&P 500.
05Which is growing faster — PPG or ECL?
By revenue growth (latest reported year), Ecolab Inc.
(ECL) is pulling ahead at 2. 2% 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 -1. 2% for Ecolab Inc.. Over a 3-year CAGR, ECL leads at 4. 3% 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 — PPG or ECL?
Ecolab Inc.
(ECL) is the more profitable company, earning 12. 9% net margin versus 9. 9% for PPG Industries, Inc. — meaning it keeps 12. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ECL leads at 18. 1% versus 13. 7% for PPG. At the gross margin level — before operating expenses — ECL leads at 44. 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.
07Is PPG or ECL more undervalued right now?
On forward earnings alone, PPG Industries, Inc.
(PPG) trades at 14. 1x forward P/E versus 31. 5x for Ecolab Inc. — 17. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ECL: 24. 2% to $327. 11.
08Which pays a better dividend — PPG or ECL?
All stocks in this comparison pay dividends.
PPG Industries, Inc. (PPG) offers the highest yield at 2. 5%, versus 1. 0% for Ecolab Inc. (ECL).
09Is PPG or ECL better for a retirement portfolio?
For long-horizon retirement investors, Ecolab Inc.
(ECL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 63), 1. 0% yield, +142. 1% 10Y return). Both have compounded well over 10 years (ECL: +142. 1%, 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.
10What are the main differences between PPG and ECL?
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: PPG is a mid-cap deep-value stock; ECL 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.
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