W.W. Grainger (NYSE:GWW) & IperionX (NASDAQ:IPX) Critical Review

W.W. Grainger (NYSE:GWW) and IperionX (NASDAQ:IPX) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares W.W. Grainger and IperionX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W.W. Grainger	$17.48 billion	2.59	$1.91 billion	$39.41	24.02
IperionX	N/A	N/A	-$35.35 million	N/A	N/A

W.W. Grainger has higher revenue and earnings than IperionX.

Profitability

This table compares W.W. Grainger and IperionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.W. Grainger	10.99%	49.63%	21.63%
IperionX	N/A	N/A	N/A

Insider & Institutional Ownership

80.7% of W.W. Grainger shares are owned by institutional investors. Comparatively, 2.8% of IperionX shares are owned by institutional investors. 6.1% of W.W. Grainger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

W.W. Grainger has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, IperionX has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for W.W. Grainger and IperionX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.W. Grainger	2	7	3	1	2.23
IperionX	1	0	2	0	2.33

W.W. Grainger currently has a consensus target price of $1,073.88, suggesting a potential upside of 13.44%. IperionX has a consensus target price of $51.00, suggesting a potential downside of 6.06%. Given W.W. Grainger’s higher probable upside, analysts clearly believe W.W. Grainger is more favorable than IperionX.

Summary

W.W. Grainger beats IperionX on 11 of the 12 factors compared between the two stocks.

About W.W. Grainger

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. It also offers technical support and inventory management services. The company serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.

About IperionX

IperionX’s mission is to be the leading developer of low carbon, sustainable, critical material supply chains focused on advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX’s breakthrough titanium technologies have demonstrated the potential to produce titanium products that are sustainable, 100% recyclable, have low carbon intensity and to do so at product qualities that meet or exceed current industry standards. The Company also holds a 100% interest in the Titan Project, covering approximately 11,100 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee.