Watsco, Inc. (WSO) vs Watsco, Inc. (WSO.B)

Watsco, Inc. and Watsco, Inc. are both Industrial Distribution companies. Watsco, Inc. is the larger, with a market value of $16.0B against $11.6B — 1.4× the size. Watsco, Inc. trades at the lower P/E: 24.4× against 27.0×. Across the 10 metrics below, Watsco, Inc. leads on 8 and Watsco, Inc. on 2.

Valuation

Metric WSO WSO.B Industrial Distribution median
P/E 24.41 26.96 28.59
P/S 1.47 1.63 1.07
P/B 3.09 3.42 3.42
Price to free cash flow 15.40 17.01 21.97
EV/EBITDA 14.27 15.82 14.63
EV/Sales 1.43 1.58 1.26
Earnings yield 4.10% 3.71% 3.20%
Free cash flow yield 6.49% 5.88% 3.97%

Profitability

Metric WSO WSO.B Industrial Distribution median
Gross margin 27.51% 27.51% 30.34%
Operating margin 9.40% 9.40% 8.06%
Net margin 6.54% 6.54% 4.95%
Free cash flow margin 9.57% 9.57% 4.67%
Return on equity 14.23% 14.23% 14.29%
Return on assets 9.71% 9.71% 5.30%
Return on invested capital 13.64% 14.18% 8.13%

Growth

Metric WSO WSO.B Industrial Distribution median
Revenue growth (TTM) (2.98%) (2.98%) 7.80%
EPS growth (last fiscal year) (7.89%) (7.89%) (3.98%)
Revenue growth, 5-year CAGR 7.45% 7.45% 9.01%
Net income growth, 5-year CAGR 15.06% 15.06% 0.99%

Health

Metric WSO WSO.B Industrial Distribution median
Debt to equity 0.04 0.00 0.53
Current ratio 3.20 3.20 2.47
Net debt to EBITDA (0.95) (0.95) 1.17

Dividend

Metric WSO WSO.B Industrial Distribution median
Dividend yield 5.65% — 1.62%
Payout ratio 1.38 — 0.48

Size

Metric WSO WSO.B Industrial Distribution median
Market cap 11.64b 15.98b 5.75b

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