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DOW vs PPG

DOW
Dow Inc.
BEARISH
Price
$38.81
Market Cap
$27.93B
Sector
Basic Materials
AI Confidence
85%
PPG
PPG Industries, Inc.
NEUTRAL
Price
$110.30
Market Cap
$24.68B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
DOW
--
PPG
15.94
Forward P/E
DOW
23.25
PPG
12.66
P/B Ratio
DOW
1.74
PPG
3.1
P/S Ratio
DOW
0.7
PPG
1.55
EV/EBITDA
DOW
16.54
PPG
11.5

Profitability

Gross Margin
DOW
6.23%
PPG
41.62%
Operating Margin
DOW
-3.14%
PPG
11.11%
Profit Margin
DOW
-6.56%
PPG
9.93%
ROE
DOW
-13.82%
PPG
21.08%
ROA
DOW
-0.07%
PPG
6.39%

Growth

Revenue Growth
DOW
-9.1%
PPG
5.0%
Earnings Growth
DOW
--
PPG
--

Financial Health

Debt/Equity
DOW
1.12
PPG
0.98
Current Ratio
DOW
1.97
PPG
1.62
Quick Ratio
DOW
1.02
PPG
1.13

Dividends

Dividend Yield
DOW
3.61%
PPG
2.59%
Payout Ratio
DOW
700.0%
PPG
40.17%

AI Verdict

DOW BEARISH

Dow Inc. exhibits severe fundamental deterioration, highlighted by a weak Piotroski F-Score of 2/9 and negative profitability across all key margins. Despite a recent speculative price surge (+83.7% in 6 months), the company is facing shrinking revenues (-9.10% YoY) and a catastrophic collapse in EPS growth (-213.3% YoY). The dividend is currently unsustainable with a 700% payout ratio, indicating a 'dividend trap' scenario where payouts exceed earnings. The massive divergence between the bearish deterministic health scores and the bullish price action suggests a high-risk valuation bubble.

Strengths
Strong short-term price momentum (+83.7% 6M)
Healthy current ratio (1.97) indicating adequate short-term liquidity
Low Price-to-Sales ratio (0.70) relative to historical norms
Risks
Severe financial health decline (Piotroski F-Score 2/9)
Unsustainable dividend payout ratio of 700%
Negative Return on Equity (-13.82%) and Profit Margins (-6.56%)
PPG NEUTRAL

PPG exhibits a stable but mediocre financial health profile with a Piotroski F-Score of 4/9 and no Altman Z-Score provided. The stock is trading at a significant premium to both its Graham Number ($74.39) and its growth-based Intrinsic Value ($48.44), suggesting a stretched valuation. While the company maintains a strong ROE of 21.08% and a sustainable dividend payout, these are offset by negative YoY EPS growth (-6.2%) and a bearish technical trend. The disconnect between the analyst 'Buy' consensus and the deterministic value scores indicates a potential value trap or a market expectation of recovery not yet reflected in the fundamentals.

Strengths
Strong Return on Equity (ROE) of 21.08%
Healthy liquidity with a Current Ratio of 1.62
Sustainable dividend payout ratio of 40.17%
Risks
Significant overvaluation relative to Graham and Intrinsic value estimates
Negative earnings momentum with YoY EPS growth at -6.2% and Q/Q EPS growth at -29.1%
Bearish technical trend (0/100) and poor 5-year price performance (-29.3%)

Compare Another Pair

DOW vs PPG: Head-to-Head Comparison

This page compares Dow Inc. (DOW) and PPG Industries, Inc. (PPG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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