Watsco Competitors

WSO Stock

USD 420.68 5.90 1.42%

WSO runs in the Industrials industry (Trading Companies & Distributors sector). Peers commonly used for benchmarking Watsco Inc include ITT, Graco, Nordson, Carlisle Companies, and Allegion PLC. Price-to-sales ratios across Watsco's competitors show which names the market values most per dollar of revenue.

Correlation: Watsco vs Pool Details

Weak diversification

The correlation between Watsco and Pool is 0.55, which Macroaxis classifies as Weak diversification for the selected horizon. The overlap area shows the portion of risk diversified away by holding both instruments together.

Moving Against Watsco Stock

0.71	VZ	Verizon Communications	Pair Corr
0.7	XOM	Exxon Mobil Corp	Pair Corr
0.66	PPERF	Bank Mandiri Persero	Pair Corr
0.66	T	ATT Inc	Pair Corr
0.52	JNJ	Johnson Johnson Sell-off Trend	Pair Corr

Specify up to 10 symbols:

The mean reversion principle applied to Watsco's suggests that neither prolonged outperformance nor underperformance is permanent. Identifying the root cause of Watsco's price dislocation is essential before acting on a mean reversion signal.

Sentiment

Range

Low	Sentiment	High
418.49	420.68	422.87

Details

Intrinsic

Valuation

Low	Intrinsic	High
342.77	344.96	462.75

Details

Naive

Forecast

Low	Next	High
384.88	387.07	389.26

Details

Bollinger

Band Projection (param)

Lower	Middle Band	Upper
373.11	418.21	463.31

Details

Competitive analysis for Watsco compares its financial performance and valuation metrics against sector peers. Cross-sectional comparison separates idiosyncratic performance from sector-level dynamics.

Watsco Competition Correlation Matrix

Correlation analysis between Watsco Inc and its competitors provides context for understanding whether diversification is real or only superficial inside the same peer group. The business currently sits in the Industrials sector and the Industrial Distribution industry. In practical terms, lower correlation may offer better diversification while higher correlation may leave the portfolio more exposed to one shared driver.

	ITT	WCC	GGG	NDSN	CSL	ALLE	IEX	TXT	AIT	POOL
ITT		0.0	-0.11	0.53	0.26	-0.06	0.0	-0.04	0.76	0.32	ITT
WCC	0.0		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	WCC
GGG	-0.11	0.0		0.56	0.79	0.86	0.0	0.75	-0.05	0.42	GGG
NDSN	0.53	0.0	0.56		0.91	0.63	0.0	0.67	0.6	0.71	NDSN
CSL	0.26	0.0	0.79	0.91		0.84	0.0	0.79	0.39	0.73	CSL
ALLE	-0.06	0.0	0.86	0.63	0.84		0.0	0.62	0.08	0.64	ALLE
IEX	0.0	0.0	0.0	0.0	0.0	0.0		0.0	0.0	0.0	IEX
TXT	-0.04	0.0	0.75	0.67	0.79	0.62	0.0		0.25	0.35	TXT
AIT	0.76	0.0	-0.05	0.6	0.39	0.08	0.0	0.25		0.28	AIT
POOL	0.32	0.0	0.42	0.71	0.73	0.64	0.0	0.35	0.28		POOL
	ITT	WCC	GGG	NDSN	CSL	ALLE	IEX	TXT	AIT	POOL

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High positive correlations

CSL	+ 0.91	NDSN
ALLE	+ 0.86	GGG
ALLE	+ 0.84	CSL
CSL	+ 0.79	GGG
TXT	+ 0.79	CSL
AIT	+ 0.76	ITT

High negative correlations

GGG	- 0.11	ITT
ALLE	- 0.06	ITT
AIT	- 0.05	GGG
TXT	- 0.04	ITT
POOL	- 0.0	IEX
AIT	- 0.0	IEX

Risk-Adjusted Indicators

Strong recent returns in Watsco Stock do not always mean Watsco Company is outperforming peers on business quality. Peer-relative risk metrics add context on drawdown behavior, consistency, and return quality. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ITT	1.52	0.10	0.05	-1.01	1.76	-1.65	3.09	-2.90	9.74
WCC	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
GGG	1.00	-0.25	0.00	-29.59	0.00	0.00	1.58	-2.50	7.39
NDSN	1.08	0.01	0.00	-0.40	1.38	-1.04	2.69	-2.17	5.68
CSL	1.43	-0.18	0.00	-0.61	0.00	0.00	3.03	-3.04	9.06
ALLE	1.30	-0.43	0.00	4.68	0.00	0.00	1.98	-2.79	11.61
IEX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
TXT	1.38	0.06	0.04	0.06	1.57	-1.41	2.37	-2.61	10.87
AIT	1.38	0.24	0.14	0.22	1.60	-1.49	3.10	-2.61	10.01
POOL	1.83	-0.43	0.00	-0.43	0.00	0.00	3.35	-3.90	17.83

Watsco Competitive Analysis

How does Watsco measure up against ITT, WESCO International, and Graco? The financials tell a nuanced story. Watsco operates at a 17.10 B scale with 7.24 B flowing through the income statement. A 18.60% return on equity and 6.85% net margin underscore Watsco's earnings capacity. Watsco leads on revenue, 7.24 B to 3.94 B. Earnings multiples split the pair: 36.34x for Watsco against 8.36x for WESCO International. Net profitability gives Graco an edge at 22.96% versus Watsco at 6.85%.

Better Than Average

Worse Than Peers

View Performance Chart

	WSO	ITT	GGG	NDSN	CSL	ALLE
	1.42 420.68 Watsco	1.75 212.69 ITT	1.01 78.68 Graco	0.81 282.69 Nordson	2.66 355.38 Carlisle	0.15 132.29 Allegion PLC
Market Volatility (90 Days Market Risk)	Very Low	Very Low	Very Low	Very Low	Very Low	Very Low
Market Performance (90 Days Performance)	Mild	Mild	Weak	Weak	Weak	Weak
Odds of Financial Distress (Probability Of Bankruptcy)	Low	Low	Low	Low	Low	Low
Current Valuation (Equity Enterprise Value)	Above Model Estimate	Above Model Estimate	Above Model Estimate	Above Model Estimate	Above Model Estimate	Above Model Estimate
Buy or Sell Analysis (Average Analysts Consensus)	Not Available	Not Available	Not Available	Not Available	Not Available	Not Available
Trade Advice (90 Days Macroaxis Advice)	Strong Sell	Strong Sell	Strong Sell	Strong Sell	Cautious Hold	Strong Sell
Return On Asset TTM	0.095	0.0813	0.12	0.0802	0.11	0.11
Total Asset TTM	4.46 B	6.31 B	3.27 B	5.92 B	6.26 B	5.22 B
Net Income TTM	464.18 M	488 M	521.84 M	484.47 M	742.8 M	643.8 M
Total Debt TTM	478.79 M	927.2 M	60.96 M	2.16 B	2.88 B	2.28 B
Retained Earnings TTM	1.32 B	2.99 B	1.46 B	4.6 B	7.33 B	2.24 B
Current Liabilities TTM	270.3 M	953.1 M	194.62 M	331.54 M	337.15 M	447.1 M
Net Asset	4.46 B	6.31 B	3.27 B	5.92 B	6.26 B	5.22 B
Current Ratio TTM	2.57 X	1.36 X	2.98 X	1.35 X	1.78 X	1.79 X
Price To Book TTM	6.11 X	4.59 X	4.79 X	5.08 X	8.74 X	5.54 X
Current Valuation	16.95 B	17.89 B	12.48 B	17.76 B	16.56 B	13.37 B
Five Year Return	3.20 %	1.00 %	1.16 %	0.88 %	1.22 %	1.06 %
Cash And Equivalents TTM	433.28 M	1.74 B	624.08 M	128.74 M	1.11 B	282.2 M
Number Of Employees	6.95 K	11.6 K	4.4 K	8.2 K	5.9 K	13.3 K
Shares Outstanding	35 M	89.4 M	165.97 M	55.78 M	40.47 M	85.94 M
Debt To Equity TTM	0.14 %	0.32 %	0.08 %	0.42 %	0.96 %	2.94 %
Annual Yield	0.03 %	0.01 %	0.01 %	0.01 %	0.01 %	0.02 %
Current Asset TTM	1.18 B	1.5 B	509.02 M	745.58 M	494.39 M	735.1 M
Trailing Beta	1.1	1.32	0.96	0.99	0.88	0.9
Return On Equity TTM	0.19	0.14	0.2	0.17	0.38	0.34
Profit Margin TTM	0.0685	0.12	0.23	0.18	0.15	0.15
Number Of Shares Shorted	37	5.2 M	3.59 M	1.08 M	2.34 M	3.06 M
Price To Sales TTM	2.36 X	4.77 X	5.75 X	5.50 X	2.81 X	2.74 X
Book Value Per Share TTM	72.75 X	47.55 X	16.53 X	55.79 X	40.91 X	24.45 X
Target Price	423.55	235.58	92.0	310.5	409.5	167.58
Last Dividend Paid	12.0	1.4	1.14	3.2	4.3	2.08
Shares Owned By Institutions	99.61 %	94.10 %	90.46 %	78.10 %	98.87 %	99.90 %
EBITDA TTM	781.43 M	842.8 M	751.53 M	874.79 M	1.22 B	989.2 M
Price To Earnings TTM	36.34 X	102.40 X	32.43 X	49.10 X	15.72 X	23.28 X
Price To Earnings To Growth	1.64 X	2.01 X	2.69 X	1.90 X	1.14 X	2.08 X
Gross Profit TTM	2.03 B	1.39 B	1.18 B	1.57 B	1.77 B	1.87 B
Market Capitalization TTM	17.1 B	18.78 B	12.93 B	15.64 B	14.01 B	11.39 B
Earnings Per Share	12.07 X	6.11 X	3.01 X	9.23 X	16.62 X	7.15 X
Short Ratio TTM	N/A	5.09 X	3.47 X	3.11 X	5.98 X	3.58 X
Operating Margin TTM	0.0683	0.19	0.26	0.25	0.17	0.19
Cash Per Share TTM	3.66 X	6.36 X	2.46 X	2.25 X	12.13 X	3.21 X
Working Capital TTM	2.24 B	2.06 B	1 B	484.59 M	1.54 B	636.4 M
Shares Owned By Insiders	0.39 %	0.48 %	0.77 %	5.58 %	1.13 %	1.10 %
Revenue TTM	7.24 B	3.94 B	2.24 B	2.79 B	5.02 B	4.07 B
Cash Flow From Operations TTM	569.61 M	668.8 M	683.59 M	719.17 M	1.1 B	783.8 M
Day Typical Price	417.83	212.14	78.6	282.2	353.43	132.57
Accumulation Distribution	0.0421	0.0223	0.0155	0.0186	0.0305	0.0196
Market Facilitation Index	17.92	4.78	1.23	5.28	10.93	2.63
Daily Balance Of Power	0.3292	0.7636	0.6423	0.4299	0.8426	-0.08
Period Momentum Indicator	5.9	3.65	0.79	2.27	9.21	-0.20
Rate Of Daily Change	1.01	1.02	1.01	1.01	1.03	1.0
Day Median Price	416.41	211.86	78.57	281.96	352.46	132.72
Price Action Indicator	7.22	2.66	0.51	1.86	7.53	-0.53
Relative Strength Index	52.69	54.42	46.3	52.11	48.12	31.96
Coefficient Of Variation	2353.91	1930.35	-538.35	9194.17	-1,129	-468.91
Mean Deviation	1.76	1.52	1.0	1.08	1.43	1.3
Jensen Alpha	0.0834	0.0953	-0.25	0.0055	-0.18	-0.43
Total Risk Alpha	0.0669	0.0798	-0.26	-0.01	-0.19	-0.45
Sortino Ratio	0.0295	0.0473	N/A	-0.0012	N/A	N/A
Downside Variance	6.62	3.42	N/A	2.06	N/A	N/A
Standard Deviation	2.19	2.02	1.3	1.41	1.91	1.99
Kurtosis	-0.09	1.46	0.8002	0.3468	0.2788	7.29
Potential Upside	3.34	3.09	1.58	2.69	3.03	1.98
Treynor Ratio	-1.42	-1.01	-29.59	-0.40	-0.61	4.68
Maximum Drawdown	9.1	9.74	7.39	5.68	9.06	11.61
Variance	4.79	4.08	1.69	2.0	3.66	3.96
Market Risk Adjusted Performance	-1.41	-1.00	-29.58	-0.39	-0.60	4.69
Risk Adjusted Performance	0.0464	0.055	-0.18	0.0136	-0.08	-0.20
Skewness	-0.46	0.6831	-0.16	0.4001	0.0824	-1.88
Semi Deviation	2.41	1.76	N/A	1.38	N/A	N/A
Information Ratio	0.0347	0.0434	-0.20	-0.0012	-0.1	-0.22
Value At Risk	-3.67	-2.90	-2.50	-2.17	-3.04	-2.79
Expected Short fall	-1.64	-1.65	N/A	-1.04	N/A	N/A
Downside Deviation	2.57	1.85	N/A	1.44	N/A	N/A
Semi Variance	5.79	3.09	N/A	1.9	N/A	N/A

Watsco Competition Peer Performance Charts

How to Analyze Watsco Against Peers

Watsco's peer analysis compares Watsco with related companies to put valuation, quality, and risk metrics in context. This establishes whether recent performance is company-specific or broadly sector-driven. A practical workflow includes:

Set a relevant peer group: Include direct competitors and close alternatives with comparable business exposure.
Benchmark core financials: Compare profitability, growth, capital structure, and cash flow quality.
Check valuation dispersion: Review whether Watsco trades at a premium or discount versus peers and why.
Evaluate risk profile: Compare volatility, drawdowns, and correlation to avoid false diversification assumptions.
Document the thesis: Record where Watsco leads or lags and what catalysts could close or widen the gap.

Use this as an educational baseline, then validate conclusions with current filings, market conditions, and portfolio objectives.

Peer Comparison Metrics & Methodology

Analyst consensus for Watsco shows a wider price target range than peers, reflecting higher uncertainty about its intrinsic value estimate. The peer set frames whether recent outperformance is broad-based or company-specific. For peer comparison, Watsco has a market cap of 17.1 billion, P/E of 36.34, profit margin of 6.85%.

Watsco Inc metrics draw on periodic company reporting and market reference feeds, standardized for cross-period comparison.

Editorial review and methodology oversight provided by: Vlad Skutelnik, Macroaxis Contributor