RELIANCE, INC. vs WATSCO INC, two Distribution stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Reliance distributes metals, Watsco HVAC, and Watsco runs the better business: a 6.85% margin against Reliance's 5.42%, a 15.43% return on equity against 11.28%, and a lighter balance sheet, 0.11 turns of debt against 0.24. Watsco trades richer, 33.7 times earnings against 25.1, and pays a bigger dividend, 2.85% against 1.24%, while converting more free cash, 4.45% against 3.05%. The pair prices a cyclical metals distributor against a steadier HVAC one: Watsco's replacement-driven demand earns higher, more consistent returns and a growth multiple, Reliance's metals distribution is cheaper but more tied to the industrial cycle, and Watsco's quality commands the premium.
Comparison updated 2026-07-11.
| Metric | RS | WSO |
|---|---|---|
| Price | $380.17 | $384.10 |
| Market cap | $19.8B | $14.6B |
| Sector | Distribution | Distribution |
| Stage | Mature | Mature |
| Implied growth (priced in) | +10.5% | +19.8% |
| P/E | 24.8 | 31.5 |
| P/B | 2.77 | 4.54 |
| P/S | 1.33 | 2.01 |
| EV/EBITDA | 15.3 | 20.0 |
| Revenue growth | +8.7% | -4.4% |
| Gross margin | — | 27.9% |
| Operating margin | 9.1% | 7.2% |
| Net margin | 5.4% | 6.8% |
| Return on equity | 11.3% | 15.4% |
| Return on assets | 7.4% | 10.7% |
| Return on invested capital | 9.5% | 16.0% |
| FCF yield | 3.1% | 4.8% |
| Dividend yield | 1.3% | 3.0% |
| Debt / equity | 0.24 | 0.11 |
| Current ratio | 4.39 | 3.34 |
| Altman Z (solvency) | 6.04 | 8.60 |
| Piotroski F (quality) | 5 / 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.