W.W. GRAINGER, INC. vs TE CONNECTIVITY PLC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Grainger distributes maintenance supplies at a 41.03% return on equity; TE Connectivity manufactures connectors at 21.96%, and though Grainger earns the higher return, TE earns the higher margin, 15.54% against 9.7%, owning its products where Grainger resells others'. TE trades far cheaper, 20.2 times earnings against Grainger's 36.4, and at 4.41 times book against 14.77, while converting more free cash, 5.81% against 2.15%. Both are high-quality names. The pair sets a premier distributor against a premier manufacturer: Grainger's returns are elite but richly priced, TE's are strong and cheaply priced, and on valuation TE offers more of its quality per dollar, a rare case where the manufacturer is both cheaper and higher-margin than the distributor.
Comparison updated 2026-07-11.
| Metric | GWW | TEL |
|---|---|---|
| Price | $1375.79 | $200.28 |
| Market cap | $65.2B | $59.1B |
| Sector | Distribution | Distribution |
| Stage | Mature | Growth |
| Implied growth (priced in) | +19.5% | +18.7% |
| P/E | 37.0 | 20.4 |
| P/B | 15.02 | 4.46 |
| P/S | 3.55 | 3.16 |
| EV/EBITDA | 22.7 | 15.4 |
| Revenue growth | +6.6% | +16.7% |
| Gross margin | 40.0% | 36.8% |
| Operating margin | 16.7% | 20.1% |
| Net margin | 9.7% | 15.5% |
| Return on equity | 41.0% | 22.0% |
| Return on assets | 18.8% | 11.3% |
| Return on invested capital | 29.0% | 17.7% |
| FCF yield | 2.1% | 5.7% |
| Dividend yield | 0.6% | 1.4% |
| Debt / equity | 0.56 | 0.43 |
| Current ratio | 2.69 | 1.89 |
| Altman Z (solvency) | 10.00 | 4.67 |
| Piotroski F (quality) | 8 / 9 | 6 / 9 |
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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.