W.W. Grainger (NYSE:GWW – Get Free Report) and EquipmentShare.com (NASDAQ:EQPT – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for W.W. Grainger and EquipmentShare.com, 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 |
| EquipmentShare.com | 1 | 5 | 6 | 0 | 2.42 |
W.W. Grainger presently has a consensus price target of $1,253.85, suggesting a potential downside of 7.08%. EquipmentShare.com has a consensus price target of $30.67, suggesting a potential upside of 91.55%. Given EquipmentShare.com’s stronger consensus rating and higher probable upside, analysts clearly believe EquipmentShare.com is more favorable than W.W. Grainger.
Institutional and Insider Ownership
80.7% of W.W. Grainger shares are owned by institutional investors. 6.3% of W.W. Grainger shares are owned by company insiders. Comparatively, 32.8% of EquipmentShare.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares W.W. Grainger and EquipmentShare.com’s 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% |
| EquipmentShare.com | N/A | N/A | N/A |
Valuation and Earnings
This table compares W.W. Grainger and EquipmentShare.com”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W.W. Grainger | $17.94 billion | 3.54 | $1.71 billion | $39.22 | 34.41 |
| EquipmentShare.com | $4.38 billion | 0.93 | $40.00 million | $0.31 | 51.65 |
W.W. Grainger has higher revenue and earnings than EquipmentShare.com. W.W. Grainger is trading at a lower price-to-earnings ratio than EquipmentShare.com, indicating that it is currently the more affordable of the two stocks.
Summary
W.W. Grainger beats EquipmentShare.com on 8 of the 13 factors compared between the two stocks.
About W.W. Grainger
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.
About EquipmentShare.com
EquipmentShare.com Inc. provides integrated, full-service construction solutions across equipment rental, sales and technology. EquipmentShare.com Inc. is based in Columbia, Missouri.
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