WESCO International, Inc. (WCC) vs Watsco, Inc. (WSO.B)

WESCO International, Inc. and Watsco, Inc. are both Industrial Distribution companies. WESCO International, Inc. is the larger, with a market value of $17.9B against $16.0B — 1.1× the size. WESCO International, Inc. trades at the lower P/E: 25.4× against 28.3×. WESCO International, Inc. grew revenue faster over the last twelve months: 12.5% against −2.98%. Watsco, Inc. has the higher net margin (6.54% vs 2.86%) and the higher return on invested capital (14.2% vs 8.13%). Both pay a dividend; Watsco, Inc. yields more (2.69% vs 0.79%). Across the 23 metrics below, Watsco, Inc. leads on 12 and WESCO International, Inc. on 11.

Valuation

Metric WCC WSO.B Industrial Distribution median
P/E 25.39 28.34 28.81
P/S 0.72 1.71 1.10
P/B 3.44 3.59 3.59
Price to free cash flow 115.61 17.88 22.50
EV/EBITDA 14.76 16.64 15.13
EV/Sales 0.92 1.67 1.31
Earnings yield 3.94% 3.53% 3.16%
Free cash flow yield 0.86% 5.59% 3.85%

Profitability

Metric WCC WSO.B Industrial Distribution median
Gross margin 21.40% 27.51% 30.34%
Operating margin 5.38% 9.40% 8.06%
Net margin 2.86% 6.54% 4.95%
Free cash flow margin 0.62% 9.57% 4.67%
Return on equity 14.35% 14.23% 14.29%
Return on assets 4.21% 9.71% 5.30%
Return on invested capital 8.13% 14.18% 8.13%

Growth

Metric WCC WSO.B Industrial Distribution median
Revenue growth (TTM) 12.51% (2.98%) 7.80%
EPS growth (last fiscal year) 0.00% (7.89%) —
Revenue growth, 5-year CAGR 13.79% 7.45% 9.01%
Net income growth, 5-year CAGR 55.77% 15.06% 0.99%

Health

Metric WCC WSO.B Industrial Distribution median
Debt to equity 1.14 0.00 0.53
Current ratio 2.09 3.20 2.47
Net debt to EBITDA 3.59 (0.95) 1.17

Dividend

Metric WCC WSO.B Industrial Distribution median
Dividend yield 0.79% 2.69% 1.54%
Payout ratio 0.05 0.63 0.00

Size

Metric WCC WSO.B Industrial Distribution median
Market cap 17.87b 15.98b 5.60b

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