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.
Grainger and Watsco are both premium distributors that earn their keep, Grainger in maintenance supply and Watsco in HVAC, and both command growth multiples. Grainger earns far more on equity, 41.03% against Watsco's 15.43%, and a higher margin, 9.7% against 6.85%, but Watsco runs the cleaner balance sheet, 0.11 turns of debt against 0.56, and pays the bigger dividend, 2.85% against 0.65%. Grainger trades a touch richer, 36.4 times earnings against 33.7. Both convert solid free cash. The pair matches two high-quality distributors at premium prices: Grainger the higher-return, higher-margin franchise, Watsco the debt-light, dividend-rich HVAC compounder, and while Grainger's economics are superior, Watsco offers more income and a lighter balance sheet for a similar multiple.
Comparison updated 2026-07-11.
| Metric | GWW | WSO |
|---|---|---|
| Price | $1375.79 | $384.10 |
| Market cap | $65.2B | $14.6B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +19.5% | +19.8% |
| P/E | 37.0 | 31.5 |
| P/B | 15.02 | 4.54 |
| P/S | 3.55 | 2.01 |
| EV/EBITDA | 22.7 | 20.0 |
| 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% | 4.8% |
| Dividend yield | 0.6% | 3.0% |
| 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.