W.W. Grainger, Inc. (GWW) vs Watsco, Inc. (WSO.B)
W.W. Grainger, Inc. and Watsco, Inc. are both Industrial Distribution companies. W.W. Grainger, Inc. is the larger, with a market value of $60.1B against $16.0B — 3.8× the size. Watsco, Inc. trades at the lower P/E: 28.3× against 31.7×. W.W. Grainger, Inc. grew revenue faster over the last twelve months: 7.80% against −2.98%. W.W. Grainger, Inc. has the higher net margin (9.92% vs 6.54%) and the higher return on invested capital (27.1% vs 14.2%). Both pay a dividend; Watsco, Inc. yields more (2.69% vs 0.83%). Across the 23 metrics below, Watsco, Inc. leads on 14 and W.W. Grainger, Inc. on 9.
Valuation
Profitability
| Metric | GWW | WSO.B | Industrial Distribution median |
|---|---|---|---|
| Gross margin | 39.40% | 27.51% | 30.34% |
| Operating margin | 14.57% | 9.40% | 8.06% |
| Net margin | 9.92% | 6.54% | 4.95% |
| Free cash flow margin | 8.17% | 9.57% | 4.67% |
| Return on equity | 43.51% | 14.23% | 14.29% |
| Return on assets | 20.16% | 9.71% | 5.30% |
| Return on invested capital | 27.09% | 14.18% | 8.13% |
Growth
Health
Dividend
Size
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