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

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

Company Profile

GWW is a standard domestic listing, while ZTO trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolGWWZTO
Company NameW.W. Grainger, Inc.ZTO Express (Cayman) Inc.
CountryUnited StatesChina
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsAir Freight & Logistics
Market Capitalization47.81 billion USD15.86 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973October 27, 2016
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of GWW and ZTO 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. ZTO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGWWZTO
5-Day Price Return2.57%-1.28%
13-Week Price Return-9.16%13.58%
26-Week Price Return-2.74%1.98%
52-Week Price Return4.33%2.50%
Month-to-Date Return-3.84%1.84%
Year-to-Date Return-5.16%2.25%
10-Day Avg. Volume0.29M3.39M
3-Month Avg. Volume0.28M2.52M
3-Month Volatility26.99%39.66%
Beta1.200.85

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.

ZTO

15.30%

Air Freight & Logistics Industry

Max
35.27%
Q3
18.47%
Median
11.35%
Q1
7.21%
Min
2.53%

ZTO’s Return on Equity of 15.30% is on par with the norm for the Air Freight & Logistics industry, indicating its profitability relative to shareholder equity is typical for the sector.

GWW vs. ZTO: A comparison of their Return on Equity (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

20.76%

Air Freight & Logistics Industry

Max
10.27%
Q3
6.18%
Median
3.96%
Q1
2.32%
Min
0.61%

ZTO’s Net Profit Margin of 20.76% is exceptionally high, placing it well beyond the typical range for the Air Freight & Logistics industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

GWW vs. ZTO: A comparison of their Net Profit Margin (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

25.33%

Air Freight & Logistics Industry

Max
17.40%
Q3
8.87%
Median
5.89%
Q1
3.03%
Min
0.62%

ZTO’s Operating Profit Margin of 25.33% is exceptionally high, placing it well above the typical range for the Air Freight & Logistics industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

GWW vs. ZTO: A comparison of their Operating Profit Margin (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics industry benchmarks.

Profitability at a Glance

SymbolGWWZTO
Return on Equity (TTM)54.86%15.30%
Return on Assets (TTM)21.63%10.15%
Net Profit Margin (TTM)10.99%20.76%
Operating Profit Margin (TTM)15.27%25.33%
Gross Profit Margin (TTM)39.25%29.65%

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.

ZTO

1.05

Air Freight & Logistics Industry

Max
1.83
Q3
1.47
Median
1.29
Q1
1.05
Min
0.62

ZTO’s Current Ratio of 1.05 falls into the lower quartile for the Air Freight & Logistics industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GWW vs. ZTO: A comparison of their Current Ratio (MRQ) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

0.27

Air Freight & Logistics Industry

Max
1.57
Q3
1.06
Median
0.72
Q1
0.30
Min
0.00

Falling into the lower quartile for the Air Freight & Logistics industry, ZTO’s Debt-to-Equity Ratio of 0.27 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

GWW vs. ZTO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

--

Air Freight & Logistics Industry

Max
49.07
Q3
23.59
Median
8.56
Q1
5.97
Min
-0.60

Interest Coverage Ratio data for ZTO is currently unavailable.

GWW vs. ZTO: A comparison of their Interest Coverage Ratio (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics industry benchmarks.

Financial Strength at a Glance

SymbolGWWZTO
Current Ratio (MRQ)2.821.05
Quick Ratio (MRQ)1.530.87
Debt-to-Equity Ratio (MRQ)0.640.27
Interest Coverage Ratio (TTM)34.56--

Growth

Revenue Growth

GWW vs. ZTO: 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. ZTO: 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.

ZTO

0.00%

Air Freight & Logistics Industry

Max
6.43%
Q3
3.10%
Median
2.40%
Q1
0.46%
Min
0.00%

ZTO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

GWW vs. ZTO: A comparison of their Dividend Yield (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

0.00%

Air Freight & Logistics Industry

Max
160.95%
Q3
92.80%
Median
54.10%
Q1
0.19%
Min
0.00%

ZTO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

GWW vs. ZTO: A comparison of their Dividend Payout Ratio (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics industry benchmarks.

Dividend at a Glance

SymbolGWWZTO
Dividend Yield (TTM)0.92%0.00%
Dividend Payout Ratio (TTM)22.89%0.00%

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.

ZTO

12.01

Air Freight & Logistics Industry

Max
34.55
Q3
23.34
Median
16.33
Q1
13.38
Min
6.36

In the lower quartile for the Air Freight & Logistics industry, ZTO’s P/E Ratio of 12.01 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

GWW vs. ZTO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

2.49

Air Freight & Logistics Industry

Max
2.13
Q3
1.16
Median
0.59
Q1
0.36
Min
0.18

With a P/S Ratio of 2.49, ZTO trades at a valuation that eclipses even the highest in the Air Freight & Logistics industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

GWW vs. ZTO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Trading Companies & Distributors and Air Freight & Logistics 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.

ZTO

1.82

Air Freight & Logistics Industry

Max
3.13
Q3
2.81
Median
1.82
Q1
1.20
Min
0.74

ZTO’s P/B Ratio of 1.82 is within the conventional range for the Air Freight & Logistics industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

SymbolGWWZTO
Price-to-Earnings Ratio (TTM)24.8412.01
Price-to-Sales Ratio (TTM)2.732.49
Price-to-Book Ratio (MRQ)13.601.82
Price-to-Free Cash Flow Ratio (TTM)33.729.58