W W Grainger (NYSE: GWW) and Welbilt (NYSE:WBT) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Valuation and Earnings
This table compares W W Grainger and Welbilt’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|W W Grainger||$10.42 billion||1.44||$585.73 million||$10.02||26.68|
|Welbilt||$1.46 billion||1.99||$79.50 million||$0.63||32.94|
Insider and Institutional Ownership
85.9% of W W Grainger shares are owned by institutional investors. Comparatively, 91.3% of Welbilt shares are owned by institutional investors. 9.6% of W W Grainger shares are owned by company insiders. Comparatively, 0.7% of Welbilt shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for W W Grainger and Welbilt, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|W W Grainger||4||10||2||0||1.88|
W W Grainger currently has a consensus target price of $228.45, suggesting a potential downside of 14.55%. Welbilt has a consensus target price of $24.00, suggesting a potential upside of 15.66%. Given Welbilt’s stronger consensus rating and higher possible upside, analysts clearly believe Welbilt is more favorable than W W Grainger.
W W Grainger pays an annual dividend of $5.12 per share and has a dividend yield of 1.9%. Welbilt does not pay a dividend. W W Grainger pays out 51.1% of its earnings in the form of a dividend. W W Grainger has increased its dividend for 46 consecutive years.
This table compares W W Grainger and Welbilt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|W W Grainger||5.62%||35.76%||11.51%|
W W Grainger Company Profile
W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company’s business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company’s other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.
Welbilt Company Profile
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
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