W.W. Grainger (NYSE:GWW – Get Free Report) is one of 157 public companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its peers? We will compare W.W. Grainger to similar businesses based on the strength of its risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
80.7% of W.W. Grainger shares are held by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 6.3% of W.W. Grainger shares are held by company insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for W.W. Grainger and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W.W. Grainger | 2 | 8 | 3 | 0 | 2.08 |
| W.W. Grainger Competitors | 1463 | 4914 | 6712 | 239 | 2.43 |
W.W. Grainger presently has a consensus target price of $1,331.08, suggesting a potential downside of 7.59%. As a group, “Trading Companies & Distributors” companies have a potential upside of 14.04%. Given W.W. Grainger’s peers stronger consensus rating and higher probable upside, analysts clearly believe W.W. Grainger has less favorable growth aspects than its peers.
Earnings & Valuation
This table compares W.W. Grainger and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| W.W. Grainger | $17.94 billion | $1.71 billion | 36.73 |
| W.W. Grainger Competitors | $6.61 billion | $363.16 million | 33.56 |
W.W. Grainger has higher revenue and earnings than its peers. W.W. Grainger is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Dividends
W.W. Grainger pays an annual dividend of $9.96 per share and has a dividend yield of 0.7%. W.W. Grainger pays out 25.4% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.7% of their earnings in the form of a dividend. W.W. Grainger has increased its dividend for 55 consecutive years.
Profitability
This table compares W.W. Grainger and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W.W. Grainger | 9.92% | 48.73% | 22.40% |
| W.W. Grainger Competitors | 1.04% | -34.43% | 3.51% |
Risk & Volatility
W.W. Grainger has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, W.W. Grainger’s peers have a beta of 1.32, suggesting that their average stock price is 32% more volatile than the S&P 500.
Summary
W.W. Grainger peers beat W.W. Grainger on 8 of the 15 factors compared.
W.W. Grainger Company Profile
W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, the United Kingdom, and internationally. The company operates through two segments, High-Touch Solutions N.A. and Endless Assortment. The company provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. It also offers technical support and inventory management services. The company serves smaller businesses to large corporations, government entities, and other institutions, as well as commercial, healthcare, and manufacturing industries through sales and service representatives, and electronic and ecommerce channels. W.W. Grainger, Inc. was founded in 1927 and is headquartered in Lake Forest, Illinois.
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