Element Solutions Inc (ESI)vsSherwin-Williams Co (SHW)
ESI
Element Solutions Inc
$30.76
+1.92%
BASIC MATERIALS · Cap: $8.72B
SHW
Sherwin-Williams Co
$344.08
-1.41%
BASIC MATERIALS · Cap: $80.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Sherwin-Williams Co generates 614% more annual revenue ($24.91B vs $3.49B). SHW leads profitability with a 10.7% profit margin vs 5.9%. SHW trades at a lower P/E of 30.6x. ESI earns a higher WallStSmart Score of 59/100 (C).
ESI
Buy59
out of 100
Grade: C
SHW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.6%
Fair Value
$32.61
Current Price
$30.76
$1.85 premium
Margin of Safety
-7.6%
Fair Value
$337.95
Current Price
$344.08
$6.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 51.7% year-over-year
Earnings expanding 68.6% YoY
Reasonable price relative to book value
Every $100 of equity generates 67 in profit
Large-cap with strong market position
Areas to Watch
ROE of 5.4% — below average capital efficiency
5.9% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.9% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ESI
The strongest argument for ESI centers on Revenue Growth, EPS Growth, Price/Book. Revenue growth of 51.7% demonstrates continued momentum.
Bull Case : SHW
The strongest argument for SHW centers on Return on Equity, Market Cap.
Bear Case : ESI
The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 42.1x leaves little room for execution misses.
Bear Case : SHW
The primary concerns for SHW are PEG Ratio, P/E Ratio, EPS Growth. Debt-to-equity of 3.52 is elevated, increasing financial risk.
Key Dynamics to Monitor
ESI profiles as a hypergrowth stock while SHW is a value play — different risk/reward profiles.
ESI carries more volatility with a beta of 1.26 — expect wider price swings.
ESI is growing revenue faster at 51.7% — sustainability is the question.
SHW generates stronger free cash flow (976M), providing more financial flexibility.
Bottom Line
ESI scores higher overall (59/100 vs 56/100) and 51.7% revenue growth. 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.
Element Solutions Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Element Solutions Inc produces and sells specialty chemicals in the United States, China, and internationally. The company is headquartered in Fort Lauderdale, Florida.
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.
Compare with Other SPECIALTY CHEMICALS Stocks
Want to dig deeper into these stocks?