W.W. GRAINGER, INC. vs RELIANCE, INC., two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where GWW and RS diverge most: on p/b, GWW reads 15.02 and RS reads 2.77; on return on equity, GWW reads 41.0% and RS reads 11.3%. The rest of the comparable metrics sit closer together. On valuation, today's GWW price has a different growth bar priced in than RS (+19.5% implied for GWW vs +10.5% for RS); the higher figure is the steeper assumption to clear, not a better or worse stock. What GWW's price implies is a bet that sits within the historical range (whole-company basis). What RS's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | GWW | RS |
|---|---|---|
| Price | $1375.79 | $380.17 |
| Market cap | $65.2B | $19.8B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +19.5% | +10.5% |
| P/E | 37.0 | 24.8 |
| P/B | 15.02 | 2.77 |
| P/S | 3.55 | 1.33 |
| EV/EBITDA | 22.7 | 15.3 |
| Revenue growth | +6.6% | +8.7% |
| Gross margin | 40.0% | — |
| Operating margin | 16.7% | 9.1% |
| Net margin | 9.7% | 5.4% |
| Return on equity | 41.0% | 11.3% |
| Return on assets | 18.8% | 7.4% |
| Return on invested capital | 29.0% | 9.5% |
| FCF yield | 2.1% | 3.1% |
| Dividend yield | 0.6% | 1.3% |
| Debt / equity | 0.56 | 0.24 |
| Current ratio | 2.69 | 4.39 |
| Altman Z (solvency) | 10.00 | 6.04 |
| Piotroski F (quality) | 8 / 9 | 5 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.