Head-To-Head Comparison: ZKH Group (NYSE:ZKH) vs. W.W. Grainger (NYSE:GWW)
by Danessa Lincoln · The Markets DailyW.W. Grainger (NYSE:GWW – Get Free Report) and ZKH Group (NYSE:ZKH – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
80.7% of W.W. Grainger shares are owned by institutional investors. Comparatively, 9.5% of ZKH Group shares are owned by institutional investors. 6.3% of W.W. Grainger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for W.W. Grainger and ZKH Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W.W. Grainger | 2 | 8 | 3 | 0 | 2.08 |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
W.W. Grainger currently has a consensus target price of $1,331.08, indicating a potential downside of 7.59%. Given W.W. Grainger’s stronger consensus rating and higher possible upside, equities research analysts clearly believe W.W. Grainger is more favorable than ZKH Group.
Valuation and Earnings
This table compares W.W. Grainger and ZKH Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W.W. Grainger | $19.37 billion | 3.50 | $1.71 billion | $45.52 | 31.64 |
| ZKH Group | $1.29 billion | 0.13 | -$19.44 million | ($0.01) | -128.00 |
W.W. Grainger has higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than W.W. Grainger, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares W.W. Grainger and ZKH Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W.W. Grainger | 11.17% | 48.92% | 22.72% |
| ZKH Group | -0.02% | -0.06% | -0.03% |
Risk & Volatility
W.W. Grainger has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Summary
W.W. Grainger beats ZKH Group on 14 of the 14 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 ZKH Group
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.