Head to Head Comparison: Sherwin-Williams (NYSE:SHW) and ZKH Group (NYSE:ZKH)

Sherwin-Williams (NYSE:SHW) and ZKH Group (NYSE:ZKH) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

77.7% of Sherwin-Williams shares are held by institutional investors. Comparatively, 9.5% of ZKH Group shares are held by institutional investors. 0.6% of Sherwin-Williams shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Sherwin-Williams and ZKH Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sherwin-Williams	$23.05 billion	3.36	$2.39 billion	$9.38	32.49
ZKH Group	$1.23 billion	1.22	-$42.86 million	N/A	N/A

Sherwin-Williams has higher revenue and earnings than ZKH Group.

Profitability

This table compares Sherwin-Williams and ZKH Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sherwin-Williams	10.52%	73.74%	11.66%
ZKH Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sherwin-Williams and ZKH Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sherwin-Williams	1	6	13	0	2.60
ZKH Group	0	0	1	0	3.00

Sherwin-Williams currently has a consensus price target of $337.37, indicating a potential upside of 10.69%. ZKH Group has a consensus price target of $21.30, indicating a potential upside of 80.66%. Given ZKH Group’s stronger consensus rating and higher possible upside, analysts plainly believe ZKH Group is more favorable than Sherwin-Williams.

Summary

Sherwin-Williams beats ZKH Group on 9 of the 11 factors compared between the two stocks.

About Sherwin-Williams

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

About ZKH Group

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. The company also provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. Further, it engages in the production and sale of intelligent warehousing equipment. The company was founded in 1998 and is based in Shanghai, the People's Republic of China.