W.W. Grainger (NYSE:GWW) and EquipmentShare.com (NASDAQ:EQPT) Critical Review

W.W. Grainger (NYSE:GWW) and EquipmentShare.com (NASDAQ:EQPT) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

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

Analyst Ratings

This is a summary of current recommendations and price targets 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 target price of $1,253.85, suggesting a potential downside of 6.80%. EquipmentShare.com has a consensus target price of $30.67, suggesting a potential upside of 82.81%. Given EquipmentShare.com’s stronger consensus rating and higher probable upside, analysts plainly believe EquipmentShare.com is more favorable than W.W. Grainger.

Valuation & Earnings

This table compares W.W. Grainger and EquipmentShare.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W.W. Grainger	$18.84 billion	3.36	$1.71 billion	$39.22	34.30
EquipmentShare.com	$4.38 billion	0.97	$40.00 million	$0.31	54.11

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.

Institutional & Insider Ownership

80.7% of W.W. Grainger shares are owned by institutional investors. 6.3% of W.W. Grainger shares are owned by insiders. Comparatively, 32.8% of EquipmentShare.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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.