SHW vs PPG vs RPM vs AXTA

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 16. 1x trailing P/E (14. 1x 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.

On trailing P/E, PPG Industries, Inc.

(PPG) is the cheapest at 16. 1x versus The Sherwin-Williams Company at 31. 5x. 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. 98x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Sherwin-Williams Company (SHW) delivered a total return of +18.

1%, compared to -30. 9% for PPG Industries, Inc. (PPG). Over 10 years, the gap is even starker: SHW returned +255. 1% versus AXTA's +1. 1%. 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, RPM International Inc. (RPM) carries a lower debt/equity ratio of 103% 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 -2. 7% for The Sherwin-Williams Company. 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.

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

9% net margin versus 7. 4% for Axalta Coating Systems Ltd. — 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 12. 3% for RPM. 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. 98x. 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 27. 6x for The Sherwin-Williams Company — 16. 4x 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 (1. 9% yield), SHW (1. 0% 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, +255. 1% 10Y return). Both have compounded well over 10 years (SHW: +255. 1%, AXTA: +1. 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 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; RPM is a mid-cap quality compounder stock; AXTA is a small-cap deep-value stock. SHW, PPG, RPM 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.