Watsco, Inc. (WSO) vs Xometry, Inc. (XMTR)

Watsco, Inc. and Xometry, Inc. are both Industrial Distribution companies. Watsco, Inc. is the larger, with a market value of $12.6B against $5.8B — 2.2× the size. Xometry, Inc. has negative trailing earnings, so its P/E is not meaningful; Watsco, Inc. trades at 26.3×. Xometry, Inc. grew revenue faster over the last twelve months: 33.8% against −2.98%. Watsco, Inc. has the higher net margin (6.06% vs −3.82%) and the higher return on invested capital (13.6% vs −5.93%). Across the 19 metrics below, Watsco, Inc. leads on 14 and Xometry, Inc. on 5.

Valuation

Metric WSO XMTR Industrial Distribution median
P/E 26.28 n/m 26.36
P/S 1.59 6.35 1.11
P/B 3.33 8.60 3.33
Price to free cash flow 16.58 n/m 22.84
EV/EBITDA 15.40 n/m 14.07
EV/Sales 1.54 6.01 1.27
Earnings yield 3.81% (0.63%) 3.38%
Free cash flow yield 6.03% (0.27%) 4.21%

Profitability

Metric WSO XMTR Industrial Distribution median
Gross margin 27.51% 38.75% 29.96%
Operating margin 9.40% (3.79%) 7.48%
Net margin 6.06% (3.82%) 4.55%
Free cash flow margin 9.57% (1.73%) 3.85%
Return on equity 13.19% (7.10%) 13.19%
Return on assets 9.00% (3.53%) 4.75%
Return on invested capital 13.64% (5.93%) 7.63%

Growth

Metric WSO XMTR Industrial Distribution median
Revenue growth (TTM) (2.98%) 33.75% 7.13%
EPS growth (last fiscal year) (7.89%) (18.45%) (7.89%)
Revenue growth, 5-year CAGR 7.45% 37.17% 9.06%
Net income growth, 5-year CAGR 15.06% 0.00% 0.00%

Health

Metric WSO XMTR Industrial Distribution median
Debt to equity 0.04 0.41 0.47
Current ratio 3.20 3.21 2.39
Net debt to EBITDA (0.95) (4.39) 1.17

Dividend

Metric WSO XMTR Industrial Distribution median
Dividend yield 4.26% — 1.10%
Payout ratio 1.12 — 0.38

Size

Metric WSO XMTR Industrial Distribution median
Market cap 12.62b 5.78b 4.78b

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