Ecovyst (NYSE:ECVT) vs. Sherwin-Williams (NYSE:SHW) Financial Contrast

Ecovyst (NYSE:ECVT) and Sherwin-Williams (NYSE:SHW) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

86.7% of Ecovyst shares are owned by institutional investors. Comparatively, 77.7% of Sherwin-Williams shares are owned by institutional investors. 1.5% of Ecovyst shares are owned by insiders. Comparatively, 0.2% of Sherwin-Williams shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ecovyst and Sherwin-Williams’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ecovyst	-9.27%	9.39%	3.71%
Sherwin-Williams	10.90%	65.26%	11.22%

Analyst Recommendations

This is a summary of recent recommendations for Ecovyst and Sherwin-Williams, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecovyst	1	1	4	0	2.50
Sherwin-Williams	0	5	9	0	2.64

Ecovyst currently has a consensus price target of $14.00, suggesting a potential upside of 1.83%. Sherwin-Williams has a consensus price target of $379.08, suggesting a potential upside of 13.25%. Given Sherwin-Williams’ stronger consensus rating and higher probable upside, analysts plainly believe Sherwin-Williams is more favorable than Ecovyst.

Risk and Volatility

Ecovyst has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Sherwin-Williams has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ecovyst and Sherwin-Williams”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecovyst	$723.50 million	2.08	-$71.13 million	($0.62)	-22.18
Sherwin-Williams	$23.57 billion	3.51	$2.57 billion	$10.27	32.59

Sherwin-Williams has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Sherwin-Williams, indicating that it is currently the more affordable of the two stocks.

Summary

Sherwin-Williams beats Ecovyst on 12 of the 14 factors compared between the two stocks.

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

About Sherwin-Williams

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.