ZKH Group (NYSE:ZKH – Get Free Report) and W.W. Grainger (NYSE:GWW – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk and Volatility
ZKH Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, W.W. Grainger has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for ZKH Group and W.W. Grainger, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
| W.W. Grainger | 2 | 8 | 3 | 0 | 2.08 |
W.W. Grainger has a consensus price target of $1,331.08, indicating a potential downside of 11.54%. Given W.W. Grainger’s stronger consensus rating and higher possible upside, analysts clearly believe W.W. Grainger is more favorable than ZKH Group.
Institutional & Insider Ownership
9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 80.7% of W.W. Grainger 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares ZKH 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 | |
| ZKH Group | $1.29 billion | 0.13 | -$19.44 million | ($0.01) | -126.90 |
| W.W. Grainger | $17.94 billion | 3.93 | $1.71 billion | $45.52 | 33.06 |
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 ZKH Group and W.W. Grainger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZKH Group | -0.02% | -0.06% | -0.03% |
| W.W. Grainger | 11.17% | 48.92% | 22.72% |
Summary
W.W. Grainger beats ZKH Group on 14 of the 14 factors compared between the two stocks.
About ZKH Group
ZKH Group Limited operates a digital procurement platform in China focused on maintenance, repair and operations (MRO) products. Through its ZKH platform, the company connects business customers with suppliers and supports the sourcing of industrial supplies. Its product offerings include tools, electrical and mechanical components, safety supplies, fasteners and other products used in industrial and commercial operations. The company also provides procurement, warehousing, fulfillment and supply-chain services designed to help customers manage purchasing and deliveries.
About W.W. Grainger
W.W. Grainger, founded in Chicago in 1927, is a distributor of maintenance, repair and operating supplies. The company provides products such as safety equipment, tools, fasteners, electrical and plumbing supplies, material-handling equipment, and cleaning products. Grainger serves businesses, government agencies and other organizations through sales representatives, distribution centers, catalogs and digital platforms. Its operations include a high-touch distribution business in North America and online businesses serving customers in markets including the United States and Japan.
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