The Sherwin-Williams Company vs Alcoa Corporation
SHW and AA are evenly matched across key metrics.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Low correlation — excellent diversification pair.
Fundamentals
| Metric | SHW | AA |
|---|---|---|
| Market Cap | $74.9B | $20.5B |
| P/E Ratio | 29.2x | 19.9x |
| Forward P/E | 22.9x | 11.5x |
| P/B | 16.81x | 3.00x |
| Dividend Yield | 1.05% | 0.52% |
| Beta | 1.16 | 1.51 |
Quantitative Metrics
| Metric | SHW | AA |
|---|---|---|
| DCF Fair Value | $259.18 | $43.49 |
| DCF Upside | -22.5% | -40.7% |
| Piotroski F | 6/9 | 6/9 |
| Altman Z | 3.75 | 2.31 |
| Beneish M | -2.50 | -2.39 |
| FCF Yield | 2.87% | 2.82% |
| Net Debt/EBITDA | 2.0x | 0.5x |
| ROIC | 15.8% | 7.8% |
| WACC | 11.7% | 13.9% |
| ROIC – WACC | 4.1pp | -6.1pp |
| Gross Margin | 48.9% | 16.9% |
| Net Margin | 10.9% | 9.0% |
| Rev Growth YoY | 2.1% | 7.9% |
| Sharpe (1Y) | -0.07 | 2.18 |
| Max Drawdown 3Y | — | -52.3% |
| FCF Payout Ratio | 30% | 19% |
SHW Price
AA Price
ETF Exposure
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
SHW vs AA: Head-to-Head Analysis
The Sherwin-Williams Company (SHW) and Alcoa Corporation (AA) represent two companies in the Basic Materials sector. Our quantitative Tale of the Tape shows these companies are evenly matched across profitability, valuation, and risk metrics.
In terms of capital efficiency, SHW generates a return on invested capital (ROIC) of 15.8% compared to AA's 7.8%. This suggests SHW is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between SHW and AA is 0.166, indicating low correlation, making them an effective diversification pair in a portfolio context.
SHW appears in 31 ETFs tracked by SecuritiesDB, while AA appears in 16 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, SHW or AA?
Our quantitative analysis compares SHW and AA across nine fundamental dimensions. SHW and AA are evenly matched across key metrics. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are SHW and AA correlated?
The 252-day correlation between SHW and AA is 0.166. They have low correlation, offering good diversification.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.