W.W. Grainger, Inc. GWW

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
77/100
Strong

About W.W. Grainger, Inc.

W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment. It provides safety, security, material handling and storage equipment, pumps and plumbing equipment, cleaning and maintenance, and metalworking and hand tools. The company … Full GWW analysis →

Competitive advantage assessment

Key strengths

  • Scale Supporting Profitability Profitability at scale is strong (score 0.92), demonstrating competitive advantages.
  • Margins Consistently Above Peers Gross margin at 39.1% (top 10%) and operating margin at 13.9% (top 5%) indicate strong pricing power.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
67

Where GWW ranks in Industrial Distribution

W.W. Grainger, Inc. ranks #2 of 21 scored companies in Industrial Distribution by moat score — the top 10%. The widest moat in the group is Fastenal Company (FAST) at 91/100.

Moat scores for companies ranked near GWW in Industrial Distribution
# Company Moat score Rating
1 Fastenal Company FAST 91/100 Strong
2 W.W. Grainger, Inc. GWW 77/100 Strong
3 Applied Industrial Technologies AIT 76/100 Strong
4 Watsco, Inc. WSO-B 70/100 Moderate
5 Watsco, Inc. WSO 70/100 Moderate
6 Ferguson Enterprises Inc. FERG 60/100 Moderate
7 Core & Main, Inc. CNM 59/100 Moderate
8 MSC Industrial Direct Company, MSM 56/100 Moderate
9 Global Industrial Company GIC 56/100 Moderate

See every General Corporate company ranked by moat score →

How GWW scores on the Corporate Default defenses

Pricing Power

Score 66 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 67 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 87 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 73 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 74 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 94 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding GWW's moat

What is W.W. Grainger, Inc.'s moat score?

W.W. Grainger, Inc. (GWW) scores 77 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 21 scored companies in Industrial Distribution, the top 10%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 20 companies in Industrial Distribution. Its strongest defense is Scale & Market Position (94/100) and its weakest is Pricing Power (66/100).

How does W.W. Grainger, Inc. compare with other Industrial Distribution companies?

W.W. Grainger, Inc. ranks #2 of 21 scored companies in Industrial Distribution by moat score. The widest moat in Industrial Distribution is Fastenal Company (FAST) at 91/100. The companies ranked closest are Fastenal Company (FAST) at 91 just above it and Applied Industrial Technologies (AIT) at 76 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 20 companies in Industrial Distribution. The defenses are then weighted to produce the overall score out of 100.

Why is W.W. Grainger, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for W.W. Grainger, Inc.?

The Corporate Default template measures 6 defenses, and GWW scores: Pricing Power (66), Cost Advantage (67), Customer Stickiness (87), Capital Efficiency (73), Resilience (74), Scale & Market Position (94). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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