Comparing W.W. Grainger (GWW) & The Competition

W.W. Grainger (NYSE:GWW) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its peers? We will compare W.W. Grainger to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, valuation and dividends.

Dividends

W.W. Grainger pays an annual dividend of $9.96 per share and has a dividend yield of 0.7%. W.W. Grainger pays out 21.9% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.6% and pay out 34.7% of their earnings in the form of a dividend. W.W. Grainger has raised its dividend for 55 consecutive years.

Valuation & Earnings

This table compares W.W. Grainger and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
W.W. Grainger	$17.94 billion	$1.71 billion	32.03
W.W. Grainger Competitors	$6.82 billion	$363.16 million	33.28

W.W. Grainger has higher revenue and earnings than its peers. W.W. Grainger is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

80.7% of W.W. Grainger shares are owned by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 6.3% of W.W. Grainger shares are owned by company insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

W.W. Grainger has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, W.W. Grainger’s peers have a beta of 1.32, meaning that their average stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for W.W. Grainger and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.W. Grainger	2	8	3	0	2.08
W.W. Grainger Competitors	1465	4918	6714	240	2.43

W.W. Grainger currently has a consensus price target of $1,331.08, suggesting a potential downside of 8.72%. As a group, “Trading Companies & Distributors” companies have a potential upside of 10.79%. Given W.W. Grainger’s peers stronger consensus rating and higher probable upside, analysts clearly believe W.W. Grainger has less favorable growth aspects than its peers.

Profitability

This table compares W.W. Grainger and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.W. Grainger	11.17%	48.92%	22.72%
W.W. Grainger Competitors	1.07%	-34.34%	3.53%

Summary

W.W. Grainger peers beat W.W. Grainger on 8 of the 15 factors compared.

About W.W. Grainger

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. It also offers technical support and inventory management services. The company serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.