Sherwin-Williams (NYSE:SHW) versus Calloway's Nursery (NYSE:CLWY) Critical Survey

Sherwin-Williams (NYSE:SHW) and Calloway's Nursery (OTCMKTS:CLWY) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Dividends

Sherwin-Williams pays an annual dividend of $5.36 per share and has a dividend yield of 0.8%. Calloway's Nursery pays an annual dividend of $1.00 per share and has a dividend yield of 11.4%. Sherwin-Williams pays out 25.4% of its earnings in the form of a dividend. Sherwin-Williams has raised its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Sherwin-Williams and Calloway's Nursery’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sherwin-Williams $17.90 billion 3.54 $1.54 billion $21.12 32.97
Calloway's Nursery $58.75 million 1.10 $3.00 million N/A N/A

Sherwin-Williams has higher revenue and earnings than Calloway's Nursery.

Risk & Volatility

Sherwin-Williams has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Calloway's Nursery has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Sherwin-Williams and Calloway's Nursery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sherwin-Williams 9.83% 53.67% 9.97%
Calloway's Nursery 5.52% 14.14% 6.34%

Analyst Recommendations

This is a summary of recent recommendations for Sherwin-Williams and Calloway's Nursery, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sherwin-Williams 1 9 13 1 2.58
Calloway's Nursery 0 0 0 0 N/A

Sherwin-Williams currently has a consensus price target of $650.33, suggesting a potential downside of 6.60%. Given Sherwin-Williams’ higher probable upside, analysts clearly believe Sherwin-Williams is more favorable than Calloway's Nursery.

Insider & Institutional Ownership

75.2% of Sherwin-Williams shares are owned by institutional investors. 0.6% of Sherwin-Williams shares are owned by insiders. Comparatively, 36.4% of Calloway's Nursery shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Sherwin-Williams beats Calloway's Nursery on 13 of the 16 factors compared between the two stocks.

Sherwin-Williams Company Profile

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The Americas 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 provides branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers 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 North and South America, the Caribbean, Europe, Asia, and Australia. As of February 19, 2019, it operated approximately 4,900 company-operated stores and facilities. The company was founded in 1866 and is headquartered in Cleveland, Ohio.

Calloway's Nursery Company Profile

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers rain bird drip irrigation, viz glass, birding, pottery, and weed control products, as well as chimeneas, fertilizers, and soils and mulches to gardeners. It operates 19 stores under the Calloway's Nursery name in Dallas and Fort Worth; and one store under the Cornelius Nursery name in Houston. The company was founded in 1986 and is based in Fort Worth, Texas.

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