WallStSmart

Cabot Corporation (CBT)vsSherwin-Williams Co (SHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sherwin-Williams Co generates 583% more annual revenue ($24.41B vs $3.58B). SHW leads profitability with a 11.0% profit margin vs 8.0%. CBT appears more attractively valued with a PEG of 1.00. SHW earns a higher WallStSmart Score of 60/100 (C+).

CBT

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 7.0Value: 6.0Quality: 6.0
Piotroski: 4/9Altman Z: 2.87

SHW

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 3.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CBTSignificantly Overvalued (-56.4%)

Margin of Safety

-56.4%

Fair Value

$48.54

Current Price

$84.54

$36.00 premium

UndervaluedFair: $48.54Overvalued
SHWOvervalued (-11.6%)

Margin of Safety

-11.6%

Fair Value

$331.40

Current Price

$369.58

$38.18 premium

UndervaluedFair: $331.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CBT3 strengths · Avg: 8.0/10
PEG RatioValuation
1.008/10

Growing faster than its price suggests

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

SHW2 strengths · Avg: 9.5/10
Return on EquityProfitability
58.7%10/10

Every $100 of equity generates 59 in profit

Market CapQuality
$87.77B9/10

Large-cap with strong market position

Areas to Watch

CBT3 concerns · Avg: 2.3/10
Profit MarginProfitability
8.0%3/10

8.0% margin — thin

Revenue GrowthGrowth
-3.4%2/10

Revenue declined 3.4%

EPS GrowthGrowth
-24.9%2/10

Earnings declined 24.9%

SHW4 concerns · Avg: 3.0/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

PEG RatioValuation
2.542/10

Expensive relative to growth rate

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CBT

The strongest argument for CBT centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bull Case : SHW

The strongest argument for SHW centers on Return on Equity, Market Cap.

Bear Case : CBT

The primary concerns for CBT are Profit Margin, Revenue Growth, EPS Growth.

Bear Case : SHW

The primary concerns for SHW are P/E Ratio, Altman Z-Score, PEG Ratio. Debt-to-equity of 3.11 is elevated, increasing financial risk.

Key Dynamics to Monitor

SHW carries more volatility with a beta of 1.09 — expect wider price swings.

SHW is growing revenue faster at 7.5% — sustainability is the question.

CBT generates stronger free cash flow (32M), providing more financial flexibility.

Monitor SPECIALTY CHEMICALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SHW scores higher overall (60/100 vs 57/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cabot Corporation

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Cabot Corporation (CBT) is a premier global provider of specialty chemicals and performance materials, recognized for its innovative solutions that enhance sustainability across diverse industries such as automotive, electronics, and coatings. The company specializes in manufacturing high-quality carbon black and specialty compounds while implementing advanced recovery solutions, underpinned by a strong emphasis on research and development. Committed to operational excellence and environmental stewardship, Cabot Corporation not only leads in setting sustainable industry standards but also forms strategic partnerships with customers to deliver advanced materials that address their dynamic requirements.

Visit Website →

Sherwin-Williams Co

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.

Want to dig deeper into these stocks?