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 +7.8% and WSO reads -3.0%; on debt / equity, GWW reads 0.53 and WSO reads 0.00. The rest of the comparable metrics sit closer together. On valuation, today's GWW price has a different growth bar priced in than WSO (+15.5% implied for GWW vs +12.1% 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 | $1289.88 | $280.05 |
| Market cap | $60.9B | $10.7B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +15.5% | +12.1% |
| P/E | 32.9 | 24.0 |
| P/B | 13.49 | 3.08 |
| P/S | 3.23 | 1.47 |
| EV/EBITDA | 20.4 | 14.2 |
| Revenue growth | +7.8% | -3.0% |
| Gross margin | 39.5% | 27.5% |
| Operating margin | 16.1% | 11.3% |
| Net margin | 9.9% | 6.5% |
| Return on equity | 41.4% | 13.7% |
| Return on assets | 19.4% | 9.4% |
| Return on invested capital | 29.8% | 16.4% |
| FCF yield | 2.5% | 6.5% |
| Dividend yield | 0.7% | 4.2% |
| Debt / equity | 0.53 | 0.00 |
| Current ratio | 2.81 | 3.20 |
| Altman Z (solvency) | 10.00 | 8.51 |
| Piotroski F (quality) | 6 / 9 | 5 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
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.