WallStSmart

H2O America (HTO)vsSherwin-Williams Co (SHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sherwin-Williams Co generates 2832% more annual revenue ($23.94B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs 10.9%. HTO appears more attractively valued with a PEG of 2.51. HTO earns a higher WallStSmart Score of 57/100 (C).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

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

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.60

$19.39 discount

UndervaluedFair: $76.99Overvalued
SHWUndervalued (+13.0%)

Margin of Safety

+13.0%

Fair Value

$359.21

Current Price

$323.68

$35.53 discount

UndervaluedFair: $359.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

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

Every $100 of equity generates 61 in profit

Market CapQuality
$76.58B9/10

Large-cap with strong market position

Areas to Watch

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

SHW3 concerns · Avg: 3.3/10
P/E RatioValuation
30.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.3x4/10

Trading at 17.3x book value

PEG RatioValuation
2.772/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : SHW

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

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : SHW

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

Key Dynamics to Monitor

SHW carries more volatility with a beta of 1.16 — expect wider price swings.

HTO is growing revenue faster at 9.4% — sustainability is the question.

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

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HTO scores higher overall (57/100 vs 56/100). 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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

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.

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