Seek Returns logo

GWW vs. SWK: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at GWW and SWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGWWSWK
Company NameW.W. Grainger, Inc.Stanley Black & Decker, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsMachinery
Market Capitalization48.48 billion USD11.84 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GWW and SWK 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.

GWW vs. SWK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGWWSWK
5-Day Price Return1.81%0.34%
13-Week Price Return-6.00%15.27%
26-Week Price Return-0.74%-13.39%
52-Week Price Return3.71%-22.14%
Month-to-Date Return-2.51%13.04%
Year-to-Date Return-3.85%-4.76%
10-Day Avg. Volume0.30M2.09M
3-Month Avg. Volume0.28M2.52M
3-Month Volatility27.57%35.92%
Beta1.201.20

Profitability

Return on Equity (TTM)

GWW

54.86%

Trading Companies & Distributors Industry

Max
32.33%
Q3
19.92%
Median
14.05%
Q1
11.46%
Min
0.91%

GWW’s Return on Equity of 54.86% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

SWK

6.59%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

SWK’s Return on Equity of 6.59% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

GWW vs. SWK: A comparison of their Return on Equity (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Net Profit Margin (TTM)

GWW

10.99%

Trading Companies & Distributors Industry

Max
17.73%
Q3
10.81%
Median
6.13%
Q1
4.33%
Min
2.09%

A Net Profit Margin of 10.99% places GWW in the upper quartile for the Trading Companies & Distributors industry, signifying strong profitability and more effective cost management than most of its peers.

SWK

3.85%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 3.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

GWW vs. SWK: A comparison of their Net Profit Margin (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Operating Profit Margin (TTM)

GWW

15.27%

Trading Companies & Distributors Industry

Max
25.50%
Q3
15.13%
Median
7.46%
Q1
5.44%
Min
3.55%

An Operating Profit Margin of 15.27% places GWW in the upper quartile for the Trading Companies & Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

SWK

4.70%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

SWK’s Operating Profit Margin of 4.70% is in the lower quartile for the Machinery industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

GWW vs. SWK: A comparison of their Operating Profit Margin (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Profitability at a Glance

SymbolGWWSWK
Return on Equity (TTM)54.86%6.59%
Return on Assets (TTM)21.63%2.63%
Net Profit Margin (TTM)10.99%3.85%
Operating Profit Margin (TTM)15.27%4.70%
Gross Profit Margin (TTM)39.25%30.03%

Financial Strength

Current Ratio (MRQ)

GWW

2.82

Trading Companies & Distributors Industry

Max
2.82
Q3
2.13
Median
1.60
Q1
1.43
Min
0.46

GWW’s Current Ratio of 2.82 is exceptionally high, placing it well outside the typical range for the Trading Companies & Distributors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

SWK

1.04

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

SWK’s Current Ratio of 1.04 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GWW vs. SWK: A comparison of their Current Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GWW

0.64

Trading Companies & Distributors Industry

Max
1.88
Q3
1.18
Median
0.74
Q1
0.54
Min
0.00

GWW’s Debt-to-Equity Ratio of 0.64 is typical for the Trading Companies & Distributors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SWK

0.74

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

SWK’s Debt-to-Equity Ratio of 0.74 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GWW vs. SWK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

GWW

34.56

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.75
Q1
2.70
Min
-1.67

With an Interest Coverage Ratio of 34.56, GWW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.

SWK

1.75

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, SWK’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

GWW vs. SWK: A comparison of their Interest Coverage Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolGWWSWK
Current Ratio (MRQ)2.821.04
Quick Ratio (MRQ)1.530.29
Debt-to-Equity Ratio (MRQ)0.640.74
Interest Coverage Ratio (TTM)34.561.75

Growth

Revenue Growth

GWW vs. SWK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GWW vs. SWK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GWW

0.92%

Trading Companies & Distributors Industry

Max
4.99%
Q3
3.04%
Median
1.94%
Q1
1.22%
Min
0.00%

GWW’s Dividend Yield of 0.92% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

SWK

7.39%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

SWK’s Dividend Yield of 7.39% is exceptionally high, placing it well above the typical range for the Machinery industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

GWW vs. SWK: A comparison of their Dividend Yield (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

GWW

22.89%

Trading Companies & Distributors Industry

Max
95.14%
Q3
62.08%
Median
51.17%
Q1
26.24%
Min
0.00%

GWW’s Dividend Payout Ratio of 22.89% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

SWK

148.38%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

SWK’s Dividend Payout Ratio of 148.38% is in the upper quartile for the Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

GWW vs. SWK: A comparison of their Dividend Payout Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Dividend at a Glance

SymbolGWWSWK
Dividend Yield (TTM)0.92%7.39%
Dividend Payout Ratio (TTM)22.89%148.38%

Valuation

Price-to-Earnings Ratio (TTM)

GWW

24.84

Trading Companies & Distributors Industry

Max
48.55
Q3
26.73
Median
17.17
Q1
10.78
Min
1.62

GWW’s P/E Ratio of 24.84 is within the middle range for the Trading Companies & Distributors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

SWK

20.08

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

SWK’s P/E Ratio of 20.08 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GWW vs. SWK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

GWW

2.73

Trading Companies & Distributors Industry

Max
4.88
Q3
2.56
Median
1.02
Q1
0.60
Min
0.29

GWW’s P/S Ratio of 2.73 is in the upper echelon for the Trading Companies & Distributors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SWK

0.77

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.77 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

GWW vs. SWK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

GWW

13.60

Trading Companies & Distributors Industry

Max
8.77
Q3
4.33
Median
2.00
Q1
1.11
Min
0.35

At 13.60, GWW’s P/B Ratio is at an extreme premium to the Trading Companies & Distributors 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.

SWK

1.16

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

SWK’s P/B Ratio of 1.16 is in the lower quartile for the Machinery industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

GWW vs. SWK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Trading Companies & Distributors and Machinery industry benchmarks.

Valuation at a Glance

SymbolGWWSWK
Price-to-Earnings Ratio (TTM)24.8420.08
Price-to-Sales Ratio (TTM)2.730.77
Price-to-Book Ratio (MRQ)13.601.16
Price-to-Free Cash Flow Ratio (TTM)33.727.08