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GWW vs. LECO: W.W. Grainger vs. Lincoln Electric Stock Comparison

How do W.W. Grainger (GWW) and Lincoln Electric (LECO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

W.W. Grainger (GWW) and Lincoln Electric (LECO) both fall under the Capital Goods industry group, but GWW is classified in Trading Companies & Distributors while LECO is classified in Machinery.

Company profile comparison for W.W. Grainger (GWW) and Lincoln Electric (LECO)
Profile ItemGWWLECO
NameW.W. Grainger Inc.Lincoln Electric Holdings, Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryTrading Companies & DistributorsMachinery
GICS Sub-IndustryTrading Companies & DistributorsIndustrial Machinery & Supplies & Components
Market Capitalization67.45 billion USD14.91 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateFebruary 21, 1973April 7, 1994
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GWW
LECO
GSPC
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for W.W. Grainger (GWW) and Lincoln Electric (LECO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for W.W. Grainger (GWW) and Lincoln Electric (LECO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Total Return (1Y)54.07%27.30%
Total Return (3Y, Annualized)24.16%17.31%
Total Return (5Y, Annualized)25.95%16.33%

Risk Profile

Drawdown History

GWW
LECO
GSPC
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for W.W. Grainger (GWW) and Lincoln Electric (LECO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Volatility (1Y, Annualized)24.49%31.13%
Beta (5Y)0.931.17
Max Drawdown (5Y)-24.50%-34.29%
Avg. Volume (3M)250.35K409.99K

Risk-Adjusted Performance

Risk-Return Positioning

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GWW and LECO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Sharpe Ratio (1Y)2.030.74
Sortino Ratio (1Y)3.311.11

Profitability

ROE (TTM)

Both companies show strong equity returns, but W.W. Grainger (GWW) at 52.33% is the standout with ROE above its industry range; Lincoln Electric (LECO) at 38.75% also sits in the top quartile.

GWW

Capital Goods industry group

52.33%

GWW
52.33%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%

LECO

Capital Goods industry group

38.75%

Max
40.55%
LECO
38.75%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Lincoln Electric (LECO) at 12.40% retains a top-quartile share of revenue as profit, ahead of W.W. Grainger (GWW) at 11.17%, which keeps about the industry-typical share.

GWW

Capital Goods industry group

11.17%

Max
27.47%
Q3
12.10%
GWW
11.17%
Median
6.30%
Q1
1.40%
Min
-12.89%

LECO

Capital Goods industry group

12.40%

Max
27.47%
LECO
12.40%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both W.W. Grainger (GWW) at 16.14% and Lincoln Electric (LECO) at 18.29% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

GWW

Capital Goods industry group

16.14%

Max
36.60%
Q3
18.33%
GWW
16.14%
Median
11.12%
Q1
5.14%
Min
-12.63%

LECO

Capital Goods industry group

18.29%

Max
36.60%
Q3
18.33%
LECO
18.29%
Median
11.12%
Q1
5.14%
Min
-12.63%
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
ROE (TTM)52.33%38.75%
ROA (TTM)20.34%13.32%
Net Margin (TTM)11.17%12.40%
Operating Margin (TTM)16.14%18.29%
Gross Margin (TTM)39.43%35.54%

Growth

Revenue Growth

Both W.W. Grainger (GWW) at 4.51% and Lincoln Electric (LECO) at 5.60% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both W.W. Grainger (GWW) at -8.55% and Lincoln Electric (LECO) at 14.36% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Revenue Growth (YoY)4.51%5.60%
Revenue Growth (3Y CAGR)5.62%4.02%
EPS Growth (YoY)-8.55%14.36%
EPS Growth (3Y CAGR)5.60%5.05%

Financial Strength

Current Ratio (MRQ)

Both W.W. Grainger (GWW) at 2.61 and Lincoln Electric (LECO) at 1.91 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

GWW

Capital Goods industry group

2.61

Max
5.22
Q3
2.95
GWW
2.61
Median
2.08
Q1
1.43
Min
0.36

LECO

Capital Goods industry group

1.91

Max
5.22
Q3
2.95
Median
2.08
LECO
1.91
Q1
1.43
Min
0.36
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both W.W. Grainger (GWW) at 0.65 and Lincoln Electric (LECO) at 0.78 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

GWW

Capital Goods industry group

0.65

Max
2.33
Q3
1.12
GWW
0.65
Median
0.60
Q1
0.29
Min
0.00

LECO

Capital Goods industry group

0.78

Max
2.33
Q3
1.12
LECO
0.78
Median
0.60
Q1
0.29
Min
0.00
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Current Ratio (MRQ)2.611.91
Debt / Equity (MRQ)0.650.78
Net Debt / EBITDA0.691.00

Dividends

Dividend Yield (TTM)

Lincoln Electric (LECO) at 1.16% delivers top-quartile income for its industry, while W.W. Grainger (GWW) at 0.65% pays a more typical yield — both are credible income propositions, LECO the richer one.

GWW

Capital Goods industry group

0.65%

Max
2.66%
Q3
1.14%
GWW
0.65%
Median
0.24%
Q1
0.00%
Min
0.00%

LECO

Capital Goods industry group

1.16%

Max
2.66%
LECO
1.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

W.W. Grainger (GWW) at 20.87% pays out a band-typical share of earnings, while Lincoln Electric (LECO) at 30.30% distributes more than its industry norm — less retained, thinner cover.

GWW

Capital Goods industry group

20.87%

Max
67.39%
Q3
28.02%
GWW
20.87%
Median
6.86%
Q1
0.00%
Min
0.00%

LECO

Capital Goods industry group

30.30%

Max
67.39%
LECO
30.30%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
Dividend Yield (TTM)0.65%1.16%
Dividend Payout Ratio (TTM)20.87%30.30%

Valuation

P/E Ratio (TTM)

Both W.W. Grainger (GWW) at 31.66 and Lincoln Electric (LECO) at 26.40 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

GWW

Capital Goods industry group

31.66

Max
59.38
Q3
35.92
GWW
31.66
Median
25.41
Q1
19.47
Min
3.03

LECO

Capital Goods industry group

26.40

Max
59.38
Q3
35.92
LECO
26.40
Median
25.41
Q1
19.47
Min
3.03
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both W.W. Grainger (GWW) at 3.48 and Lincoln Electric (LECO) at 3.21 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

GWW

Capital Goods industry group

3.48

Max
7.54
Q3
3.76
GWW
3.48
Median
2.15
Q1
1.03
Min
0.03

LECO

Capital Goods industry group

3.21

Max
7.54
Q3
3.76
LECO
3.21
Median
2.15
Q1
1.03
Min
0.03
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Lincoln Electric (LECO) at 9.59 sits in the upper P/B ratio quartile, and W.W. Grainger (GWW) at 15.56 prices even higher, above its industry range.

GWW

Capital Goods industry group

15.56

GWW
15.56
Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08

LECO

Capital Goods industry group

9.59

Max
9.66
LECO
9.59
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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W.W. Grainger (GWW) vs. Lincoln Electric (LECO): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for W.W. Grainger (GWW) and Lincoln Electric (LECO)
MetricGWWLECO
P/E Ratio (TTM)31.6626.40
P/S Ratio (TTM)3.483.21
P/B Ratio (MRQ)15.569.59
Free Cash Flow Yield (TTM)1.97%2.68%