RPM vs ITW vs SWK vs GGG

For growth investors, Graco Inc.

(GGG) is the stronger pick with 5. 8% revenue growth year-over-year, versus -1. 5% for Stanley Black & Decker, Inc. (SWK). RPM International Inc. (RPM) offers the better valuation at 19. 0x trailing P/E (18. 5x 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, RPM International Inc.

(RPM) is the cheapest at 19. 0x versus Stanley Black & Decker, Inc. at 30. 3x. On forward P/E, Stanley Black & Decker, Inc. is actually cheaper at 17. 6x — 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: RPM International Inc. wins at 1. 03x versus Graco Inc. 's 2. 54x — a reasonable growth-adjusted valuation.

Over the past 5 years, Illinois Tool Works Inc.

(ITW) delivered a total return of +18. 9%, compared to -56. 2% for Stanley Black & Decker, Inc. (SWK). Over 10 years, the gap is even starker: GGG returned +228. 8% versus SWK's -1. 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), Illinois Tool Works Inc.

(ITW) is the lower-risk stock at 0. 67β versus Stanley Black & Decker, Inc. 's 1. 83β — meaning SWK is approximately 173% more volatile than ITW relative to the S&P 500. On balance sheet safety, Graco Inc. (GGG) carries a lower debt/equity ratio of 2% versus 3% for Illinois Tool Works 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 -1. 5% for Stanley Black & Decker, Inc. (SWK). On earnings-per-share growth, the picture is similar: Stanley Black & Decker, Inc. grew EPS 35. 9% year-over-year, compared to -10. 4% for Illinois Tool Works 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.

Graco Inc.

(GGG) is the more profitable company, earning 23. 3% net margin versus 2. 7% for Stanley Black & Decker, 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 7. 6% for SWK. 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, RPM International Inc. (RPM) is the more undervalued stock at a PEG of 1. 03x versus Graco Inc. 's 2. 54x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Stanley Black & Decker, Inc. (SWK) trades at 17. 6x forward P/E versus 25. 2x for Graco Inc. — 7. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GGG: 21. 6% to $95. 67.

All stocks in this comparison pay dividends.

Stanley Black & Decker, Inc. (SWK) offers the highest yield at 4. 1%, versus 1. 4% for Graco Inc. (GGG).

For long-horizon retirement investors, Illinois Tool Works Inc.

(ITW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 67), 2. 4% yield, +189. 4% 10Y return). Stanley Black & Decker, Inc. (SWK) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ITW: +189. 4%, SWK: -1. 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.

These companies operate in different sectors (RPM (Basic Materials) and ITW (Industrials) and SWK (Industrials) and GGG (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: RPM is a mid-cap quality compounder stock; ITW is a mid-cap quality compounder stock; SWK is a mid-cap income-oriented stock; GGG 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.