Chemicals - Specialty
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SHW vs PPG
Revenue, margins, valuation, and 5-year total return — side by side.
Chemicals - Specialty
SHW vs PPG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| Market Cap | $77.06B | $23.81B |
| Revenue (TTM) | $23.94B | $16.12B |
| Net Income (TTM) | $2.60B | $1.58B |
| Gross Margin | 49.1% | 40.6% |
| Operating Margin | 16.1% | 12.8% |
| Forward P/E | 26.6x | 13.5x |
| Total Debt | $14.53B | $7.45B |
| Cash & Equiv. | $207M | $2.16B |
SHW vs PPG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| The Sherwin-William… (SHW) | 100 | 157.8 | +57.8% |
| PPG Industries, Inc. (PPG) | 100 | 104.7 | +4.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SHW vs PPG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
SHW carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 37 yrs, beta 0.79, yield 1.0%
- Rev growth 2.1%, EPS growth -2.7%, 3Y rev CAGR 2.1%
- 245.5% 10Y total return vs PPG's 18.5%
PPG is the clearest fit if your priority is valuation efficiency and defensive.
- PEG 1.46 vs SHW's 3.85
- Beta 1.07, yield 2.6%, current ratio 1.62x
- Lower P/E (13.5x vs 26.6x), PEG 1.46 vs 3.85
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.1% revenue growth vs PPG's 0.2% | |
| Value | Lower P/E (13.5x vs 26.6x), PEG 1.46 vs 3.85 | |
| Quality / Margins | 10.9% margin vs PPG's 9.8% | |
| Stability / Safety | Beta 0.79 vs PPG's 1.07 | |
| Dividends | 1.0% yield, 37-year raise streak, vs PPG's 2.6% | |
| Momentum (1Y) | -0.9% vs SHW's -12.3% | |
| Efficiency (ROA) | 10.0% ROA vs PPG's 8.5%, ROIC 16.5% vs 23.5% |
SHW vs PPG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
SHW vs PPG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
SHW leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
SHW and PPG operate at a comparable scale, with $23.9B and $16.1B in trailing revenue. Profitability is closely matched — net margins range from 10.9% (SHW) to 9.8% (PPG).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $23.9B | $16.1B |
| EBITDAEarnings before interest/tax | $4.5B | $2.6B |
| Net IncomeAfter-tax profit | $2.6B | $1.6B |
| Free Cash FlowCash after capex | $2.9B | $1.2B |
| Gross MarginGross profit ÷ Revenue | +49.1% | +40.6% |
| Operating MarginEBIT ÷ Revenue | +16.1% | +12.8% |
| Net MarginNet income ÷ Revenue | +10.9% | +9.8% |
| FCF MarginFCF ÷ Revenue | +12.1% | +7.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.8% | +6.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +7.5% | +4.3% |
Valuation Metrics
PPG leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 15.4x trailing earnings, PPG trades at a 49% valuation discount to SHW's 30.4x P/E. Adjusting for growth (PEG ratio), PPG offers better value at 1.67x vs SHW's 4.40x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $77.1B | $23.8B |
| Enterprise ValueMkt cap + debt − cash | $91.4B | $29.1B |
| Trailing P/EPrice ÷ TTM EPS | 30.42x | 15.38x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.61x | 13.50x |
| PEG RatioP/E ÷ EPS growth rate | 4.40x | 1.67x |
| EV / EBITDAEnterprise value multiple | 20.80x | 10.79x |
| Price / SalesMarket cap ÷ Revenue | 3.27x | 1.50x |
| Price / BookPrice ÷ Book value/share | 16.91x | — |
| Price / FCFMarket cap ÷ FCF | 29.04x | 20.48x |
Profitability & Efficiency
PPG leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
SHW delivers a 58.2% return on equity — every $100 of shareholder capital generates $58 in annual profit, vs $31 for PPG. On the Piotroski fundamental quality scale (0–9), PPG scores 7/9 vs SHW's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +58.2% | +31.1% |
| ROA (TTM)Return on assets | +10.0% | +8.5% |
| ROICReturn on invested capital | +16.5% | +23.5% |
| ROCEReturn on capital employed | +21.3% | +24.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 3.16x | — |
| Net DebtTotal debt minus cash | $14.3B | $5.3B |
| Cash & Equiv.Liquid assets | $207M | $2.2B |
| Total DebtShort + long-term debt | $14.5B | $7.4B |
| Interest CoverageEBIT ÷ Interest expense | 7.83x | 9.16x |
Total Returns (Dividends Reinvested)
SHW leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SHW five years ago would be worth $11,499 today (with dividends reinvested), compared to $6,660 for PPG. Over the past 12 months, PPG leads with a -0.9% total return vs SHW's -12.3%. The 3-year compound annual growth rate (CAGR) favors SHW at 11.6% vs PPG's -6.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -4.4% | +2.7% |
| 1-Year ReturnPast 12 months | -12.3% | -0.9% |
| 3-Year ReturnCumulative with dividends | +39.1% | -17.1% |
| 5-Year ReturnCumulative with dividends | +15.0% | -33.4% |
| 10-Year ReturnCumulative with dividends | +245.5% | +18.5% |
| CAGR (3Y)Annualised 3-year return | +11.6% | -6.0% |
Risk & Volatility
SHW leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SHW is the less volatile stock with a 0.79 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 | 0.79x | 1.07x |
| 52-Week HighHighest price in past year | $379.65 | $133.43 |
| 52-Week LowLowest price in past year | $301.58 | $93.39 |
| % of 52W HighCurrent price vs 52-week peak | +82.3% | +79.7% |
| RSI (14)Momentum oscillator 0–100 | 35.9 | 41.7 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 2.0M |
Analyst Outlook
Evenly matched — SHW and PPG each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates SHW as "Buy" and PPG as "Buy". Consensus price targets imply 24.6% upside for SHW (target: $389) vs 20.0% for PPG (target: $128). For income investors, PPG offers the higher dividend yield at 2.60% vs SHW's 1.02%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $389.43 | $127.67 |
| # AnalystsCovering analysts | 38 | 38 |
| Dividend YieldAnnual dividend ÷ price | +1.0% | +2.6% |
| Dividend StreakConsecutive years of raises | 37 | 15 |
| Dividend / ShareAnnual DPS | $3.17 | $2.77 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.3% |
SHW leads in 3 of 6 categories (Income & Cash Flow, Total Returns). PPG leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
SHW vs PPG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SHW or PPG a better buy right now?
For growth investors, The Sherwin-Williams Company (SHW) is the stronger pick with 2.
1% revenue growth year-over-year, versus 0. 2% for PPG Industries, Inc. (PPG). PPG Industries, Inc. (PPG) offers the better valuation at 15. 4x trailing P/E (13. 5x forward), making it the more compelling value choice. Analysts rate The Sherwin-Williams Company (SHW) 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 — SHW or PPG?
On trailing P/E, PPG Industries, Inc.
(PPG) is the cheapest at 15. 4x versus The Sherwin-Williams Company at 30. 4x. On forward P/E, PPG Industries, Inc. is actually cheaper at 13. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PPG Industries, Inc. wins at 1. 46x versus The Sherwin-Williams Company's 3. 85x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — SHW or PPG?
Over the past 5 years, The Sherwin-Williams Company (SHW) delivered a total return of +15.
0%, compared to -33. 4% for PPG Industries, Inc. (PPG). Over 10 years, the gap is even starker: SHW returned +245. 5% versus PPG's +18. 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 — SHW or PPG?
By beta (market sensitivity over 5 years), The Sherwin-Williams Company (SHW) is the lower-risk stock at 0.
79β versus PPG Industries, Inc. 's 1. 07β — meaning PPG is approximately 35% more volatile than SHW relative to the S&P 500.
05Which is growing faster — SHW or PPG?
By revenue growth (latest reported year), The Sherwin-Williams Company (SHW) is pulling ahead at 2.
1% 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 -2. 7% for The Sherwin-Williams Company. Over a 3-year CAGR, SHW leads at 2. 1% 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 — SHW or PPG?
The Sherwin-Williams Company (SHW) is the more profitable company, earning 10.
9% net margin versus 9. 9% for PPG Industries, Inc. — 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 13. 7% for PPG. 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.
07Is SHW or PPG more undervalued right now?
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, PPG Industries, Inc. (PPG) is the more undervalued stock at a PEG of 1. 46x versus The Sherwin-Williams Company's 3. 85x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, PPG Industries, Inc. (PPG) trades at 13. 5x forward P/E versus 26. 6x for The Sherwin-Williams Company — 13. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHW: 24. 6% to $389. 43.
08Which pays a better dividend — SHW or PPG?
All stocks in this comparison pay dividends.
PPG Industries, Inc. (PPG) offers the highest yield at 2. 6%, versus 1. 0% for The Sherwin-Williams Company (SHW).
09Is SHW or PPG better for a retirement portfolio?
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, +245. 5% 10Y return). Both have compounded well over 10 years (SHW: +245. 5%, PPG: +18. 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 SHW and PPG?
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: SHW is a mid-cap quality compounder stock; PPG is a mid-cap deep-value 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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