Stepan Company (SCL)vsSherwin-Williams Co (SHW)
SCL
Stepan Company
$61.57
-0.15%
BASIC MATERIALS · Cap: $1.40B
SHW
Sherwin-Williams Co
$323.31
+1.85%
BASIC MATERIALS · Cap: $78.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Sherwin-Williams Co generates 903% more annual revenue ($24.41B vs $2.43B). SHW leads profitability with a 11.0% profit margin vs -0.1%. SCL appears more attractively valued with a PEG of 1.75. SHW earns a higher WallStSmart Score of 60/100 (C+).
SCL
Buy58
out of 100
Grade: C
SHW
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SCL.
Margin of Safety
+2.3%
Fair Value
$330.90
Current Price
$323.31
$7.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 101.6% YoY
15.0% revenue growth
Every $100 of equity generates 70 in profit
Large-cap with strong market position
Generating 1.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -1.2% — below average capital efficiency
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
Distress zone — elevated risk
Trading at 20.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SCL
The strongest argument for SCL centers on Price/Book, EPS Growth, Revenue Growth. Revenue growth of 15.0% demonstrates continued momentum.
Bull Case : SHW
The strongest argument for SHW centers on Return on Equity, Market Cap, Free Cash Flow.
Bear Case : SCL
The primary concerns for SCL are PEG Ratio, Market Cap, Return on Equity.
Bear Case : SHW
The primary concerns for SHW are PEG Ratio, P/E Ratio, Altman Z-Score. Debt-to-equity of 3.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
SCL profiles as a turnaround stock while SHW is a value play — different risk/reward profiles.
SHW carries more volatility with a beta of 1.09 — expect wider price swings.
SCL is growing revenue faster at 15.0% — sustainability is the question.
SHW generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
SHW scores higher overall (60/100 vs 58/100). Both earn "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.
Stepan Company
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Stepan Company produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia. The company is headquartered in Northfield, Illinois.
Sherwin-Williams Co
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.
Compare with Other SPECIALTY CHEMICALS Stocks
Want to dig deeper into these stocks?