W.W. Grainger (NYSE:GWW – Get Free Report) and DMC Global (NASDAQ:BOOM – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Earnings & Valuation
This table compares W.W. Grainger and DMC Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W.W. Grainger | $17.94 billion | 2.99 | $1.71 billion | $35.39 | 32.06 |
| DMC Global | $609.84 million | 0.18 | -$13.45 million | ($0.89) | -6.01 |
Insider and Institutional Ownership
80.7% of W.W. Grainger shares are owned by institutional investors. Comparatively, 77.6% of DMC Global shares are owned by institutional investors. 6.3% of W.W. Grainger shares are owned by insiders. Comparatively, 7.1% of DMC Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares W.W. Grainger and DMC Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W.W. Grainger | 9.51% | 47.46% | 21.49% |
| DMC Global | -3.01% | -2.77% | -1.07% |
Risk & Volatility
W.W. Grainger has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for W.W. Grainger and DMC Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W.W. Grainger | 1 | 5 | 2 | 0 | 2.13 |
| DMC Global | 2 | 1 | 1 | 0 | 1.75 |
W.W. Grainger presently has a consensus target price of $1,096.71, suggesting a potential downside of 3.33%. DMC Global has a consensus target price of $8.50, suggesting a potential upside of 58.88%. Given DMC Global’s higher possible upside, analysts plainly believe DMC Global is more favorable than W.W. Grainger.
Summary
W.W. Grainger beats DMC Global on 11 of the 14 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 DMC Global
DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
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