QXO, Inc. vs WATSCO INC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
QXO is a building-products rollup losing money as it acquires scale, a negative 5.07% return; Watsco is a mature HVAC distributor earning 15.43% on a clean, nearly debt-free balance sheet. Watsco trades at 33.7 times earnings and pays a 2.85% dividend; QXO at no earnings multiple and 1.30 times book, reinvesting everything. Watsco converts 4.45% free cash, QXO 1.47%. The pair contrasts a finished, high-quality distributor with an unfinished one: Watsco shows the steady returns and dividends a well-run building-products distributor can deliver, QXO is still assembling the pieces, and the two mark the beginning and the maturity of the same distribution ambition.
Comparison updated 2026-07-11.
| Metric | QXO | WSO |
|---|---|---|
| Price | $14.98 | $384.10 |
| Market cap | $11.2B | $14.6B |
| Sector | Distribution | Distribution |
| Stage | Growth | Mature |
| Implied growth (priced in) | — | +19.8% |
| P/E | — | 31.5 |
| P/B | 1.10 | 4.54 |
| P/S | 1.30 | 2.01 |
| EV/EBITDA | — | 20.0 |
| Revenue growth | +200.0% | -4.4% |
| Gross margin | 23.7% | 27.9% |
| Operating margin | -14.6% | 7.2% |
| Net margin | -6.0% | 6.8% |
| Return on equity | -5.1% | 15.4% |
| Return on assets | -3.1% | 10.7% |
| Return on invested capital | -2.7% | 16.0% |
| FCF yield | 1.8% | 4.8% |
| Dividend yield | — | 3.0% |
| Debt / equity | 0.30 | 0.11 |
| Current ratio | 3.33 | 3.34 |
| Altman Z (solvency) | 1.76 | 8.60 |
| Piotroski F (quality) | 3 / 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.