HENRY SCHEIN, INC. vs WATSCO INC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Two distributors, two very different categories: Henry Schein moves dental and medical supply at a 2.95% margin, Watsco moves HVAC equipment at 6.85%, more than double, and earns the higher return on equity, 15.43% against 10.08%. Watsco runs a cleaner balance sheet, 0.11 turns against 0.27, and pays a 2.85% dividend against none. Watsco trades richer, 33.7 times earnings against 25.7, the premium for its better margins and income. Both convert roughly 4.5% free cash. The pair contrasts a healthcare distributor with an HVAC one: Watsco earns more, pays a real dividend, and carries less debt, while Schein offers a lower multiple and the defensive pull of healthcare demand, and Watsco's superior economics justify much of its higher price.
Comparison updated 2026-07-11.
| Metric | HSIC | WSO |
|---|---|---|
| Price | $84.37 | $384.10 |
| Market cap | $9.8B | $14.6B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +5.1% | +19.8% |
| P/E | 25.5 | 31.5 |
| P/B | 2.50 | 4.54 |
| P/S | 0.73 | 2.01 |
| EV/EBITDA | 10.9 | 20.0 |
| Revenue growth | +5.6% | -4.4% |
| Gross margin | 31.8% | 27.9% |
| Operating margin | 5.4% | 7.2% |
| Net margin | 3.0% | 6.8% |
| Return on equity | 10.1% | 15.4% |
| Return on assets | 3.5% | 10.7% |
| Return on invested capital | 10.5% | 16.0% |
| FCF yield | 4.5% | 4.8% |
| Dividend yield | — | 3.0% |
| Debt / equity | 0.27 | 0.11 |
| Current ratio | 1.36 | 3.34 |
| Altman Z (solvency) | 2.68 | 8.60 |
| Piotroski F (quality) | 4 / 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.