APD vs. SHW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APD and SHW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
APD’s market capitalization stands at 64.95 billion USD, while SHW’s is 88.71 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.87 for APD and 1.21 for SHW, both stocks show similar sensitivity to overall market movements.
| Symbol | APD | SHW |
|---|---|---|
| Company Name | Air Products and Chemicals, Inc. | The Sherwin-Williams Company |
| Country | US | US |
| Sector | Basic Materials | Basic Materials |
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| CEO | Eduardo F. Menezes | Heidi G. Petz |
| Price | 291.84 USD | 354 USD |
| Market Cap | 64.95 billion USD | 88.71 billion USD |
| Beta | 0.87 | 1.21 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APD and SHW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APD
9.65%
Chemicals - Specialty Industry
- Max
- 34.45%
- Q3
- 15.78%
- Median
- 7.65%
- Q1
- 2.96%
- Min
- -12.04%
APD’s Return on Equity of 9.65% is on par with the norm for the Chemicals - Specialty industry, indicating its profitability relative to shareholder equity is typical for the sector.
SHW
66.63%
Chemicals - Specialty Industry
- Max
- 34.45%
- Q3
- 15.78%
- Median
- 7.65%
- Q1
- 2.96%
- Min
- -12.04%
SHW’s Return on Equity of 66.63% is exceptionally high, placing it well beyond the typical range for the Chemicals - Specialty industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
APD
3.50%
Chemicals - Specialty Industry
- Max
- 20.22%
- Q3
- 10.99%
- Median
- 5.25%
- Q1
- 3.06%
- Min
- -8.62%
APD’s Return on Invested Capital of 3.50% is in line with the norm for the Chemicals - Specialty industry, reflecting a standard level of efficiency in generating profits from its capital base.
SHW
14.57%
Chemicals - Specialty Industry
- Max
- 20.22%
- Q3
- 10.99%
- Median
- 5.25%
- Q1
- 3.06%
- Min
- -8.62%
In the upper quartile for the Chemicals - Specialty industry, SHW’s Return on Invested Capital of 14.57% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APD
12.76%
Chemicals - Specialty Industry
- Max
- 23.23%
- Q3
- 10.64%
- Median
- 5.14%
- Q1
- 0.64%
- Min
- -8.93%
A Net Profit Margin of 12.76% places APD in the upper quartile for the Chemicals - Specialty industry, signifying strong profitability and more effective cost management than most of its peers.
SHW
11.63%
Chemicals - Specialty Industry
- Max
- 23.23%
- Q3
- 10.64%
- Median
- 5.14%
- Q1
- 0.64%
- Min
- -8.93%
A Net Profit Margin of 11.63% places SHW in the upper quartile for the Chemicals - Specialty industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
APD
12.29%
Chemicals - Specialty Industry
- Max
- 26.42%
- Q3
- 15.81%
- Median
- 10.07%
- Q1
- 4.82%
- Min
- -7.44%
APD’s Operating Profit Margin of 12.29% is around the midpoint for the Chemicals - Specialty industry, indicating that its efficiency in managing core business operations is typical for the sector.
SHW
16.50%
Chemicals - Specialty Industry
- Max
- 26.42%
- Q3
- 15.81%
- Median
- 10.07%
- Q1
- 4.82%
- Min
- -7.44%
An Operating Profit Margin of 16.50% places SHW in the upper quartile for the Chemicals - Specialty industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | APD | SHW |
|---|---|---|
| Return on Equity (TTM) | 9.65% | 66.63% |
| Return on Assets (TTM) | 3.94% | 10.88% |
| Return on Invested Capital (TTM) | 3.50% | 14.57% |
| Net Profit Margin (TTM) | 12.76% | 11.63% |
| Operating Profit Margin (TTM) | 12.29% | 16.50% |
| Gross Profit Margin (TTM) | 31.94% | 48.72% |
Financial Strength
Current Ratio
APD
1.00
Chemicals - Specialty Industry
- Max
- 3.95
- Q3
- 2.60
- Median
- 2.04
- Q1
- 1.60
- Min
- 0.77
APD’s Current Ratio of 1.00 falls into the lower quartile for the Chemicals - Specialty industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
SHW
0.77
Chemicals - Specialty Industry
- Max
- 3.95
- Q3
- 2.60
- Median
- 2.04
- Q1
- 1.60
- Min
- 0.77
SHW’s Current Ratio of 0.77 falls into the lower quartile for the Chemicals - Specialty industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
APD
1.12
Chemicals - Specialty Industry
- Max
- 1.65
- Q3
- 1.10
- Median
- 0.73
- Q1
- 0.55
- Min
- 0.01
APD’s leverage is in the upper quartile of the Chemicals - Specialty industry, with a Debt-to-Equity Ratio of 1.12. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
SHW
3.10
Chemicals - Specialty Industry
- Max
- 1.65
- Q3
- 1.10
- Median
- 0.73
- Q1
- 0.55
- Min
- 0.01
With a Debt-to-Equity Ratio of 3.10, SHW operates with exceptionally high leverage compared to the Chemicals - Specialty industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
APD
7.77
Chemicals - Specialty Industry
- Max
- 13.69
- Q3
- 9.06
- Median
- 5.24
- Q1
- 1.68
- Min
- -3.09
APD’s Interest Coverage Ratio of 7.77 is positioned comfortably within the norm for the Chemicals - Specialty industry, indicating a standard and healthy capacity to cover its interest payments.
SHW
9.13
Chemicals - Specialty Industry
- Max
- 13.69
- Q3
- 9.06
- Median
- 5.24
- Q1
- 1.68
- Min
- -3.09
SHW’s Interest Coverage Ratio of 9.13 is in the upper quartile for the Chemicals - Specialty industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | APD | SHW |
|---|---|---|
| Current Ratio (TTM) | 1.00 | 0.77 |
| Quick Ratio (TTM) | 0.85 | 0.45 |
| Debt-to-Equity Ratio (TTM) | 1.12 | 3.10 |
| Debt-to-Asset Ratio (TTM) | 0.42 | 0.52 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.19 | 2.82 |
| Interest Coverage Ratio (TTM) | 7.77 | 9.13 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APD and SHW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APD
2.44%
Chemicals - Specialty Industry
- Max
- 9.19%
- Q3
- 2.44%
- Median
- 1.46%
- Q1
- 0.25%
- Min
- 0.00%
With a Dividend Yield of 2.44%, APD offers a more attractive income stream than most of its peers in the Chemicals - Specialty industry, signaling a strong commitment to shareholder returns.
SHW
0.85%
Chemicals - Specialty Industry
- Max
- 9.19%
- Q3
- 2.44%
- Median
- 1.46%
- Q1
- 0.25%
- Min
- 0.00%
SHW’s Dividend Yield of 0.85% is consistent with its peers in the Chemicals - Specialty industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
APD
102.68%
Chemicals - Specialty Industry
- Max
- 163.70%
- Q3
- 57.04%
- Median
- 30.02%
- Q1
- 12.51%
- Min
- 0.00%
APD’s Dividend Payout Ratio of 102.68% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
SHW
27.66%
Chemicals - Specialty Industry
- Max
- 163.70%
- Q3
- 57.04%
- Median
- 30.02%
- Q1
- 12.51%
- Min
- 0.00%
SHW’s Dividend Payout Ratio of 27.66% is within the typical range for the Chemicals - Specialty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | APD | SHW |
|---|---|---|
| Dividend Yield (TTM) | 2.44% | 0.85% |
| Dividend Payout Ratio (TTM) | 102.68% | 27.66% |
Valuation
Price-to-Earnings Ratio
APD
42.39
Chemicals - Specialty Industry
- Max
- 56.68
- Q3
- 33.75
- Median
- 23.45
- Q1
- 16.09
- Min
- 7.50
A P/E Ratio of 42.39 places APD in the upper quartile for the Chemicals - Specialty industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
SHW
32.94
Chemicals - Specialty Industry
- Max
- 56.68
- Q3
- 33.75
- Median
- 23.45
- Q1
- 16.09
- Min
- 7.50
SHW’s P/E Ratio of 32.94 is within the middle range for the Chemicals - Specialty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
APD
6.80
Chemicals - Specialty Industry
- Max
- 6.58
- Q3
- 3.23
- Median
- 1.64
- Q1
- 0.96
- Min
- 0.16
APD’s Forward PEG Ratio of 6.80 is exceptionally high for the Chemicals - Specialty industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
SHW
2.72
Chemicals - Specialty Industry
- Max
- 6.58
- Q3
- 3.23
- Median
- 1.64
- Q1
- 0.96
- Min
- 0.16
SHW’s Forward PEG Ratio of 2.72 is within the middle range of its peers in the Chemicals - Specialty industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
APD
5.40
Chemicals - Specialty Industry
- Max
- 3.76
- Q3
- 2.31
- Median
- 1.38
- Q1
- 0.89
- Min
- 0.16
With a P/S Ratio of 5.40, APD trades at a valuation that eclipses even the highest in the Chemicals - Specialty industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
SHW
3.85
Chemicals - Specialty Industry
- Max
- 3.76
- Q3
- 2.31
- Median
- 1.38
- Q1
- 0.89
- Min
- 0.16
With a P/S Ratio of 3.85, SHW trades at a valuation that eclipses even the highest in the Chemicals - Specialty industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
APD
4.42
Chemicals - Specialty Industry
- Max
- 6.73
- Q3
- 3.78
- Median
- 1.56
- Q1
- 1.27
- Min
- 0.35
APD’s P/B Ratio of 4.42 is in the upper tier for the Chemicals - Specialty industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
SHW
21.38
Chemicals - Specialty Industry
- Max
- 6.73
- Q3
- 3.78
- Median
- 1.56
- Q1
- 1.27
- Min
- 0.35
At 21.38, SHW’s P/B Ratio is at an extreme premium to the Chemicals - Specialty industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | APD | SHW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.39 | 32.94 |
| Forward PEG Ratio (TTM) | 6.80 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 5.40 | 3.85 |
| Price-to-Book Ratio (P/B, TTM) | 4.42 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.99 | 40.78 |
| EV-to-EBITDA (TTM) | 22.33 | 22.68 |
| EV-to-Sales (TTM) | 6.65 | 4.40 |