W.W. GRAINGER, INC. vs WATSCO INC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where GWW and WSO diverge most: on revenue growth, GWW reads +6.6% and WSO reads -4.4%; on dividend yield, GWW reads 0.6% and WSO reads 3.8%. The rest of the comparable metrics sit closer together. On valuation, today's GWW price has a different growth bar priced in than WSO (+17.5% implied for GWW vs +13.2% for WSO); the higher figure is the steeper assumption to clear, not a better or worse stock. What GWW's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | GWW | WSO |
|---|---|---|
| Price | $1382.23 | $309.39 |
| Market cap | $65.5B | $11.7B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +17.5% | +13.2% |
| P/E | 37.2 | 25.4 |
| P/B | 15.09 | 3.65 |
| P/S | 3.57 | 1.62 |
| EV/EBITDA | 22.8 | 16.1 |
| Revenue growth | +6.6% | -4.4% |
| Gross margin | 40.0% | 27.9% |
| Operating margin | 16.7% | 7.2% |
| Net margin | 9.7% | 6.8% |
| Return on equity | 41.0% | 15.4% |
| Return on assets | 18.8% | 10.7% |
| Return on invested capital | 29.0% | 16.0% |
| FCF yield | 2.1% | 5.9% |
| Dividend yield | 0.6% | 3.8% |
| Debt / equity | 0.56 | 0.11 |
| Current ratio | 2.69 | 3.34 |
| Altman Z (solvency) | 10.00 | 8.60 |
| Piotroski F (quality) | 8 / 9 | 5 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.