PPG Industries, Inc. (PPG) Stock Analysis

PPG’s competitive advantages stem from its global scale, product breadth, and innovation capabilities. The company operates in over 70 countries, giving it a diversified revenue base—68% of 2024 sales were outside the U.S.—which helps buffer regional downturns.¹ PPG’s portfolio spans architectural, industrial, and performance coatings, serving end-markets from aerospace to automotive.² This diversity reduces reliance on any single sector or geography, a key differentiator versus more concentrated peers.

Brand strength and customer relationships are notable. PPG’s brands, such as Glidden and Comex, are well-established, and the company is a preferred supplier to major OEMs and contractors.³ Its technical service and local-for-local manufacturing model foster customer loyalty and responsiveness, especially important in coatings, where product performance and service are critical.⁴

Innovation is a core strength. PPG invests roughly 2.8% of sales in R&D ($447 million in 2024)⁵, supporting a steady pipeline of new products, including sustainable and high-performance coatings. The company’s recent third-party certification for environmental impact tools and recognition on Newsweek’s “World’s Greenest Companies” list underscore its leadership in sustainability—a growing customer priority.

Compared to Sherwin-Williams (19.4% EBITDA margin in 2024)⁶ and AkzoNobel (13.8%)⁷, PPG’s 18.1% margin reflects both operational efficiency and pricing power⁸. However, PPG faces intense competition, cyclical demand, and raw material cost volatility⁹. Its asset-light, flexible cost structure and disciplined capital allocation (over $1.3 billion in share repurchases since 2021) help mitigate these risks and support long-term returns¹⁰.