VLTO vs SHW

For growth investors, Veralto Corporation (VLTO) is the stronger pick with 6.

0% revenue growth year-over-year, versus 2. 1% for The Sherwin-Williams Company (SHW). Veralto Corporation (VLTO) offers the better valuation at 23. 1x trailing P/E (20. 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.

On trailing P/E, Veralto Corporation (VLTO) is the cheapest at 23.

1x versus The Sherwin-Williams Company at 31. 5x. On forward P/E, Veralto Corporation is actually cheaper at 20. 5x.

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

1%, compared to +9. 1% for Veralto Corporation (VLTO). Over 10 years, the gap is even starker: SHW returned +255. 1% versus VLTO's +9. 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), Veralto Corporation (VLTO) is the lower-risk stock at 0.

66β versus The Sherwin-Williams Company's 0. 79β — meaning SHW is approximately 20% more volatile than VLTO relative to the S&P 500. On balance sheet safety, Veralto Corporation (VLTO) carries a lower debt/equity ratio of 86% versus 3% for The Sherwin-Williams Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Veralto Corporation (VLTO) is pulling ahead at 6.

0% versus 2. 1% for The Sherwin-Williams Company (SHW). On earnings-per-share growth, the picture is similar: Veralto Corporation grew EPS 12. 6% year-over-year, compared to -2. 7% for The Sherwin-Williams Company. Over a 3-year CAGR, VLTO leads at 4. 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.

Veralto Corporation (VLTO) is the more profitable company, earning 17.

1% net margin versus 10. 9% for The Sherwin-Williams Company — meaning it keeps 17. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VLTO leads at 23. 2% versus 16. 1% for SHW. At the gross margin level — before operating expenses — VLTO leads at 59. 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.

On forward earnings alone, Veralto Corporation (VLTO) trades at 20.

5x forward P/E versus 27. 6x for The Sherwin-Williams Company — 7. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VLTO: 22. 2% to $106. 14.

All stocks in this comparison pay dividends.

The Sherwin-Williams Company (SHW) offers the highest yield at 1. 0%, versus 0. 5% for Veralto Corporation (VLTO).

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%, VLTO: +9. 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.

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

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.