Analyzing Sherwin-Williams (NYSE:SHW) & ZKH Group (NYSE:ZKH)

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

Insider & Institutional Ownership

9.5% of ZKH Group shares are held by institutional investors. Comparatively, 77.7% of Sherwin-Williams shares are held by institutional investors. 0.6% of Sherwin-Williams shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZKH Group	$1.23 billion	1.32	-$43.00 million	N/A	N/A
Sherwin-Williams	$22.98 billion	3.54	$2.39 billion	$9.38	34.16

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ZKH Group and Sherwin-Williams, as reported by MarketBeat.

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

ZKH Group presently has a consensus target price of $21.30, suggesting a potential upside of 68.51%. Sherwin-Williams has a consensus target price of $341.39, suggesting a potential upside of 6.79%. Given ZKH Group’s stronger consensus rating and higher probable upside, equities analysts clearly 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 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 provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People's Republic of China.

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.