RPM vs SHW: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: RPM is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. RPM and SHW share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined RPM and SHW exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

RPM International Inc. is an Ohio-based maker of specialty coatings, sealants, adhesives, and building materials that runs a decentralized house-of-brands model across four segments: Construction Products Group, Performance Coatings Group, Consumer Group, and Specialty Products Group. Its portfolio spans consumer names sold through home-improvement retailers (Rust-Oleum, DAP, Zinsser) and industrial franchises used in commercial construction and maintenance (Tremco, Carboline, Euclid Chemical), giving it exposure to both do-it-yourself demand and large infrastructure and reroofing projects. Fiscal 2025 (year ended May 31, 2025) sales were roughly $7.4 billion.

Full RPM guide

Sherwin-Williams (SHW) is one of the world's largest paint and coatings companies. Its most valuable asset is a vast network of company-operated paint stores across the United States and beyond, where professional painters and contractors buy architectural paint, supplies, and color-matching services. This store network gives Sherwin-Williams direct relationships with the pros who drive repeat, high-margin demand and is a major competitive moat that is hard to replicate.

Full SHW guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• RPM drivers: MAP 2025 margin program; Diversified brand portfolio.
• SHW drivers: Company-owned store moat; Pricing power and margins.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: RPM's end markets are cyclical and sensitive to construction activity, housing turnover, and consumer discretionary spending, so a slowdown can pressure volumes. For SHW, sherwin-Williams is cyclical, exposed to housing, construction, and consumer spending, so a downturn in home turnover, renovation, or new building pressures volumes.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick RPM if you believe its drivers more; SHW if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the RPM and SHW guides.

RPM. RPM trades at roughly a low-20s trailing earnings multiple, in line with its history as a steady specialty-chemicals compounder rather than a deep-value or high-growth stock. The fiscal 2026 third quarter showed record sales near $1.6 billion and adjusted EPS well ahead of expectations, reflecting MAP-driven margin gains. Revenue growth is generally forecast in the low-to-mid single digits, so the multiple leans on continued margin expansion and dividend growth.

SHW. Sherwin-Williams trades at a premium valuation reflecting its quality, pricing power, store-network moat, and consistent compounding rather than rapid growth. The multiple embeds confidence in margin recovery and steady capital returns, so the stock is sensitive to housing cycles, raw-material costs, and any sign of decelerating volumes or margin pressure.

Headline figures (approximate, July 2026): RPM shows revenue (fy2025) ~$7.4B, diluted eps (fy2025) ~$5.35, market cap ~$13-14B, p/e (trailing) ~21x; SHW shows revenue (ttm) ~$23 billion, operating margin ~17-18%, net income (ttm) Several billion dollars, p/e (ttm) ~30x (premium multiple).

RPM and SHW are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined RPM and SHW exposure against your real portfolio. It is not an investment adviser.