Contrasting W.W. Grainger (NYSE:GWW) and RS Group (OTCMKTS:EENEF)

RS Group (OTCMKTS:EENEF) and W.W. Grainger (NYSE:GWW) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for RS Group and W.W. Grainger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RS Group	0	1	1	0	2.50
W.W. Grainger	1	6	1	0	2.00

W.W. Grainger has a consensus target price of $913.89, suggesting a potential downside of 4.26%. Given W.W. Grainger’s higher probable upside, analysts clearly believe W.W. Grainger is more favorable than RS Group.

Profitability

This table compares RS Group and W.W. Grainger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RS Group	N/A	N/A	N/A
W.W. Grainger	11.10%	56.54%	23.03%

Insider & Institutional Ownership

50.4% of RS Group shares are owned by institutional investors. Comparatively, 80.7% of W.W. Grainger shares are owned by institutional investors. 9.5% of W.W. Grainger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares RS Group and W.W. Grainger’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RS Group	N/A	N/A	N/A	N/A	N/A
W.W. Grainger	$16.48 billion	2.85	$1.83 billion	$36.21	26.36

W.W. Grainger has higher revenue and earnings than RS Group.

Summary

W.W. Grainger beats RS Group on 7 of the 8 factors compared between the two stocks.

About RS Group

RS Group plc, together with its subsidiaries, distributes various electronics and industrial products and solutions in the United Kingdom, the United States, France, Germany, Italy, Mexico, and internationally. The company provides industrial interconnect and test, industrial automation and control, board-level electronics, and single-board computing products; and tools, consumables, and facilities maintenance products, such as personal protective equipment, site safety products, and 3D printing products. It offers DesignSpark, a software tool, for design engineers; procurement solutions for buyers; and onsite stock solutions for maintenance engineers, as well as provides value added solutions, such as design, procurement, inventory, and maintenance. The company offers its products under the RS, RS Safety Solutions, RS Integrated Supply, RS PRO, DesignSpark, and OKdo brands to designers, builders, and maintainers of industrial equipment and operations. It serves manufacturing, services, and infrastructure industries. The company was formerly known as Electrocomponents plc. RS Group plc was founded in 1928 and is based in London, the United Kingdom.

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.