WallStSmart

Element Solutions Inc (ESI)vsSherwin-Williams Co (SHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sherwin-Williams Co generates 756% more annual revenue ($23.94B vs $2.80B). SHW leads profitability with a 10.9% profit margin vs 5.3%. SHW trades at a lower P/E of 30.7x. SHW earns a higher WallStSmart Score of 56/100 (C).

ESI

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.41

SHW

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESIOvervalued (-7.3%)

Margin of Safety

-7.3%

Fair Value

$30.22

Current Price

$43.90

$13.68 premium

UndervaluedFair: $30.22Overvalued
SHWUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$359.21

Current Price

$316.82

$42.39 discount

UndervaluedFair: $359.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESI1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
41.5%10/10

Revenue surging 41.5% year-over-year

SHW2 strengths · Avg: 9.5/10
Return on EquityProfitability
60.7%10/10

Every $100 of equity generates 61 in profit

Market CapQuality
$78.98B9/10

Large-cap with strong market position

Areas to Watch

ESI4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

P/E RatioValuation
68.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-42.5%2/10

Earnings declined 42.5%

SHW3 concerns · Avg: 3.3/10
P/E RatioValuation
30.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.0x4/10

Trading at 17.0x book value

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ESI

The strongest argument for ESI centers on Revenue Growth. Revenue growth of 41.5% 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 68.2x leaves little room for execution misses.

Bear Case : SHW

The primary concerns for SHW are P/E Ratio, Price/Book, PEG Ratio.

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 1.28 — expect wider price swings.

ESI is growing revenue faster at 41.5% — sustainability is the question.

SHW generates stronger free cash flow (800,000), providing more financial flexibility.

Bottom Line

SHW scores higher overall (56/100 vs 48/100). Both earn "Buy" and "Hold" 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.

Want to dig deeper into these stocks?