GGG vs. AOS

Last updated Jun 4, 2026

GGG (Graco Inc.) and AOS (A. O. Smith Corporation) are both stocks. Both operate in the Specialty Industrial Machinery industry within the Industrials sector. Over the past 10 years, GGG returned 12.00%/yr vs 5.11%/yr for AOS. At a 0.40 correlation, their price movements are largely independent.

Performance

GGG vs. AOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Graco Inc. (GGG) and A. O. Smith Corporation (AOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GGG achieves a -9.37% return, which is significantly higher than AOS's -14.27% return. Over the past 10 years, GGG has outperformed AOS with an annualized return of 12.00%, while AOS has yielded a comparatively lower 5.11% annualized return.

GGG

• 1D: -0.35%
• 1M: -5.26%
• YTD: -9.37%
• 6M: -10.48%
• 1Y: -11.42%
• 3Y*: -1.34%
• 5Y*: 0.83%
• 10Y*: 12.00%

AOS

• 1D: -0.05%
• 1M: -3.62%
• YTD: -14.27%
• 6M: -14.83%
• 1Y: -9.49%
• 3Y*: -4.15%
• 5Y*: -1.99%
• 10Y*: 5.11%

*Multi-year figures are annualized to reflect compound growth (CAGR)

GGG vs. AOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GGG Graco Inc.	-9.37%	-1.46%	-1.68%	30.62%	-15.48%	12.56%	40.97%	25.94%	-6.34%	65.60%
AOS A. O. Smith Corporation	-14.27%	0.07%	-15.92%	47.30%	-32.07%	59.28%	17.46%	13.65%	-29.35%	30.78%

Correlation

The correlation between GGG and AOS is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jul 10, 1986	0.40

Over the past year, GGG and AOS have become more correlated (0.70) than their long-term average of 0.40, meaning their price movements have been converging.

Fundamentals

EPS GGG : $4.09 AOS : $3.75
PE Ratio GGG : 18.06 AOS : 15.13
PEG Ratio GGG : 3.55 AOS : 0.62
PS Ratio GGG : 4.15 AOS : 2.09
Total Revenue (TTM) GGG : $2.25B AOS : $3.81B
Gross Profit (TTM) GGG : $1.18B AOS : $1.48B
EBITDA (TTM) GGG : $712.41M AOS : $794.70M

Return for Risk

GGG vs. AOS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GGG

GGG Risk / Return Rank: 15
GGG Sharpe Ratio Rank: 15
GGG Sortino Ratio Rank: 15
GGG Omega Ratio Rank: 16
GGG Calmar Ratio Rank: 22
GGG Martin Ratio Rank: 8

AOS

AOS Risk / Return Rank: 25
AOS Sharpe Ratio Rank: 24
AOS Sortino Ratio Rank: 21
AOS Omega Ratio Rank: 22
AOS Calmar Ratio Rank: 30
AOS Martin Ratio Rank: 26

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GGG vs. AOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Graco Inc. (GGG) and A. O. Smith Corporation (AOS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	GGG	AOS	Difference
Sharpe ratio Return per unit of total volatility	-0.60	-0.39	-0.22
Sortino ratio Return per unit of downside risk	-0.75	-0.41	-0.34
Omega ratio Gain probability vs. loss probability	0.91	0.95	-0.04
Calmar ratio Return relative to maximum drawdown	-0.52	-0.31	-0.21
Martin ratio Return relative to average drawdown	-1.40	-0.77	-0.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GGG vs. AOS - Sharpe Ratio Comparison

The current GGG Sharpe Ratio is -0.60, which is lower than the AOS Sharpe Ratio of -0.39. The chart below compares the historical Sharpe Ratios of GGG and AOS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GGG	AOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.60	-0.39	-0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.04	-0.07	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.19	+0.30
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.42	+0.01

Drawdowns

GGG vs. AOS - Drawdown Comparison

The maximum GGG drawdown since its inception was -68.77%, roughly equal to the maximum AOS drawdown of -66.07%. Use the drawdown chart below to compare losses from any high point for GGG and AOS.

Drawdown Indicators

	GGG	AOS	Difference
Max Drawdown Largest peak-to-trough decline	-68.77%	-66.07%	-2.70%
Max Drawdown (1Y) Largest decline over 1 year	-21.92%	-30.29%	+8.37%
Max Drawdown (3Y) Largest decline over 3 years	-21.92%	-36.93%	+15.01%
Max Drawdown (5Y) Largest decline over 5 years	-28.98%	-42.68%	+13.70%
Max Drawdown (10Y) Largest decline over 10 years	-30.60%	-46.81%	+16.21%
Current Drawdown Current decline from peak	-21.92%	-35.86%	+13.94%
Average Drawdown Average peak-to-trough decline	-12.10%	-20.47%	+8.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.16%	12.30%	-4.14%

Volatility

GGG vs. AOS - Volatility Comparison

The current volatility for Graco Inc. (GGG) is 4.52%, while A. O. Smith Corporation (AOS) has a volatility of 7.88%. This indicates that GGG experiences smaller price fluctuations and is considered to be less risky than AOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GGG	AOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	7.88%	-3.36%
Volatility (6M) Calculated over the trailing 6-month period	14.17%	18.90%	-4.73%
Volatility (1Y) Calculated over the trailing 1-year period	19.00%	24.73%	-5.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.63%	27.07%	-4.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.76%	27.06%	-2.30%

Dividends

GGG vs. AOS - Dividend Comparison

GGG's dividend yield for the trailing twelve months is around 1.54%, less than AOS's 2.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AOS A. O. Smith Corporation	2.50%	2.06%	1.91%	1.84%	1.99%	1.23%	1.79%	1.89%	1.78%	0.91%	1.01%	0.99%
GGG Graco Inc.	1.54%	1.34%	1.21%	1.08%	1.25%	0.93%	0.97%	1.23%	1.27%	1.06%	1.59%	1.67%

Financials

GGG vs. AOS - Profitability Comparison

The chart below illustrates the profitability comparison between Graco Inc. and A. O. Smith Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

GGG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Graco Inc. reported a gross profit of 280.64M and revenue of 540.14M. Therefore, the gross margin over that period was 52.0%.

AOS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a gross profit of 365.70M and revenue of 945.60M. Therefore, the gross margin over that period was 38.7%.

GGG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Graco Inc. reported an operating income of 137.78M and revenue of 540.14M, resulting in an operating margin of 25.5%.

AOS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported an operating income of 161.80M and revenue of 945.60M, resulting in an operating margin of 17.1%.

GGG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Graco Inc. reported a net income of 118.51M and revenue of 540.14M, resulting in a net margin of 21.9%.

AOS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a net income of 118.00M and revenue of 945.60M, resulting in a net margin of 12.5%.

Frequently Asked Questions

Can I hold both GGG and AOS in my portfolio?

GGG and AOS have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GGG or AOS?

AOS has higher volatility (7.88%) compared to GGG (4.52%). In terms of maximum drawdown, GGG dropped -68.77% vs AOS's -66.07%.

Which has better risk-adjusted returns?

AOS currently has the higher Sharpe Ratio (-0.39 vs -0.60), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.