PPG Industries Inc (PPG)vsVertex Pharmaceuticals Inc (VRTX)
PPG
PPG Industries Inc
$109.61
+0.62%
BASIC MATERIALS · Cap: $24.28B
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
Smart Verdict
WallStSmart Research — data-driven comparison
PPG Industries Inc generates 32% more annual revenue ($16.12B vs $12.22B). VRTX leads profitability with a 35.5% profit margin vs 9.8%. PPG appears more attractively valued with a PEG of 1.44. VRTX earns a higher WallStSmart Score of 66/100 (B-).
PPG
Buy60
out of 100
Grade: C+
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.0%
Fair Value
$155.95
Current Price
$109.61
$46.34 discount
Margin of Safety
+57.2%
Fair Value
$992.87
Current Price
$429.82
$563.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Areas to Watch
4.2% earnings growth
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PPG
The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
Bear Case : PPG
The primary concerns for PPG are EPS Growth, Free Cash Flow.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
PPG profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
PPG carries more volatility with a beta of 1.05 — expect wider price swings.
VRTX is growing revenue faster at 7.8% — sustainability is the question.
VRTX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 60/100), backed by strong 35.5% margins. PPG offers better value entry with a 16.0% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PPG Industries Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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