RPM vs SHW vs PPG vs AXTA vs HXL

For growth investors, The Sherwin-Williams Company (SHW) is the stronger pick with 2.

1% revenue growth year-over-year, versus -3. 0% for Axalta Coating Systems Ltd. (AXTA). PPG Industries, Inc. (PPG) offers the better valuation at 15. 7x trailing P/E (13. 8x 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, PPG Industries, Inc.

(PPG) is the cheapest at 15. 7x versus Hexcel Corporation at 69. 9x. On forward P/E, Axalta Coating Systems Ltd. is actually cheaper at 11. 2x — 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: Axalta Coating Systems Ltd. wins at 0. 41x versus The Sherwin-Williams Company's 3. 94x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Hexcel Corporation (HXL) delivered a total return of +80.

6%, compared to -32. 2% for PPG Industries, Inc. (PPG). Over 10 years, the gap is even starker: SHW returned +250. 0% versus AXTA's +0. 9%. 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), The Sherwin-Williams Company (SHW) is the lower-risk stock at 0.

79β versus Axalta Coating Systems Ltd. 's 1. 13β — meaning AXTA is approximately 42% more volatile than SHW relative to the S&P 500. On balance sheet safety, Hexcel Corporation (HXL) carries a lower debt/equity ratio of 79% versus 3% for The Sherwin-Williams Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Sherwin-Williams Company (SHW) is pulling ahead at 2.

1% versus -3. 0% for Axalta Coating Systems Ltd. (AXTA). On earnings-per-share growth, the picture is similar: PPG Industries, Inc. grew EPS 45. 7% year-over-year, compared to -13. 8% for Hexcel Corporation. Over a 3-year CAGR, HXL leads at 6. 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.

The Sherwin-Williams Company (SHW) is the more profitable company, earning 10.

9% net margin versus 5. 8% for Hexcel Corporation — meaning it keeps 10. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SHW leads at 16. 1% versus 9. 1% for HXL. At the gross margin level — before operating expenses — SHW leads at 48. 9%, 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, Axalta Coating Systems Ltd. (AXTA) is the more undervalued stock at a PEG of 0. 41x versus The Sherwin-Williams Company's 3. 94x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Axalta Coating Systems Ltd. (AXTA) trades at 11. 2x forward P/E versus 41. 8x for Hexcel Corporation — 30. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AXTA: 22. 1% to $34. 86.

In this comparison, PPG (2.

5% yield), RPM (2. 0% yield), SHW (1. 0% yield), HXL (0. 7% yield) pay a dividend. AXTA does not pay a meaningful dividend and should not be held primarily for income.

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

79), 1. 0% yield, +250. 0% 10Y return). Both have compounded well over 10 years (SHW: +250. 0%, AXTA: +0. 9%), 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 SHW (Basic Materials) and PPG (Basic Materials) and AXTA (Basic Materials) and HXL (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; SHW is a mid-cap quality compounder stock; PPG is a mid-cap deep-value stock; AXTA is a small-cap deep-value stock; HXL is a small-cap quality compounder stock. RPM, SHW, PPG, HXL pay a dividend while AXTA does not, making them suitable for different income and tax situations. 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.