Critical Comparison: W.W. Grainger (NYSE:GWW) versus Applied Visual Sciences (OTCMKTS:APVS)

Applied Visual Sciences (OTCMKTS:APVS) and W.W. Grainger (NYSE:GWW) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Risk & Volatility

Applied Visual Sciences has a beta of 6.79, suggesting that its stock price is 579% more volatile than the S&P 500. Comparatively, W.W. Grainger has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Applied Visual Sciences and W.W. Grainger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Visual Sciences	0	0	0	0	0.00
W.W. Grainger	1	7	2	0	2.10

W.W. Grainger has a consensus price target of $1,274.12, indicating a potential downside of 2.40%. Given Applied Visual Sciences’ higher possible upside, analysts plainly believe Applied Visual Sciences is more favorable than W.W. Grainger.

Valuation & Earnings

This table compares Applied Visual Sciences and W.W. Grainger”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Visual Sciences	N/A	N/A	N/A	N/A	N/A
W.W. Grainger	$18.84 billion	3.26	$1.71 billion	$39.22	33.28

W.W. Grainger has higher revenue and earnings than Applied Visual Sciences.

Profitability

This table compares Applied Visual Sciences and W.W. Grainger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Visual Sciences	N/A	N/A	N/A
W.W. Grainger	9.92%	48.73%	22.40%

Insider and Institutional Ownership

80.7% of W.W. Grainger shares are held by institutional investors. 33.0% of Applied Visual Sciences shares are held by insiders. Comparatively, 6.3% of W.W. Grainger shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

W.W. Grainger beats Applied Visual Sciences on 7 of the 10 factors compared between the two stocks.

About Applied Visual Sciences

Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.

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.