AIT vs. WSO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIT and WSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WSO’s market capitalization of 18.55 billion USD is significantly greater than AIT’s 9.36 billion USD, highlighting its more substantial market valuation.
With betas of 0.92 for AIT and 1.05 for WSO, both stocks show similar sensitivity to overall market movements.
| Symbol | AIT | WSO |
|---|---|---|
| Company Name | Applied Industrial Technologies, Inc. | Watsco, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Distribution | Industrial - Distribution |
| CEO | Neil A. Schrimsher | Albert H. Nahmad |
| Price | 245.74 USD | 457.32 USD |
| Market Cap | 9.36 billion USD | 18.55 billion USD |
| Beta | 0.92 | 1.05 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | June 7, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIT and WSO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AIT
22.01%
Industrial - Distribution Industry
- Max
- 31.99%
- Q3
- 26.73%
- Median
- 19.92%
- Q1
- 10.89%
- Min
- -9.35%
AIT’s Return on Equity of 22.01% is on par with the norm for the Industrial - Distribution industry, indicating its profitability relative to shareholder equity is typical for the sector.
WSO
19.92%
Industrial - Distribution Industry
- Max
- 31.99%
- Q3
- 26.73%
- Median
- 19.92%
- Q1
- 10.89%
- Min
- -9.35%
WSO’s Return on Equity of 19.92% is on par with the norm for the Industrial - Distribution industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AIT
14.75%
Industrial - Distribution Industry
- Max
- 30.61%
- Q3
- 16.52%
- Median
- 12.03%
- Q1
- 6.68%
- Min
- -1.11%
AIT’s Return on Invested Capital of 14.75% is in line with the norm for the Industrial - Distribution industry, reflecting a standard level of efficiency in generating profits from its capital base.
WSO
15.97%
Industrial - Distribution Industry
- Max
- 30.61%
- Q3
- 16.52%
- Median
- 12.03%
- Q1
- 6.68%
- Min
- -1.11%
WSO’s Return on Invested Capital of 15.97% is in line with the norm for the Industrial - Distribution industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AIT
8.64%
Industrial - Distribution Industry
- Max
- 11.08%
- Q3
- 7.38%
- Median
- 5.32%
- Q1
- 3.79%
- Min
- 0.06%
A Net Profit Margin of 8.64% places AIT in the upper quartile for the Industrial - Distribution industry, signifying strong profitability and more effective cost management than most of its peers.
WSO
6.98%
Industrial - Distribution Industry
- Max
- 11.08%
- Q3
- 7.38%
- Median
- 5.32%
- Q1
- 3.79%
- Min
- 0.06%
WSO’s Net Profit Margin of 6.98% is aligned with the median group of its peers in the Industrial - Distribution industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AIT
11.29%
Industrial - Distribution Industry
- Max
- 15.31%
- Q3
- 10.56%
- Median
- 8.43%
- Q1
- 5.85%
- Min
- -0.91%
An Operating Profit Margin of 11.29% places AIT in the upper quartile for the Industrial - Distribution industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
WSO
9.99%
Industrial - Distribution Industry
- Max
- 15.31%
- Q3
- 10.56%
- Median
- 8.43%
- Q1
- 5.85%
- Min
- -0.91%
WSO’s Operating Profit Margin of 9.99% is around the midpoint for the Industrial - Distribution industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AIT | WSO |
|---|---|---|
| Return on Equity (TTM) | 22.01% | 19.92% |
| Return on Assets (TTM) | 12.47% | 11.88% |
| Return on Invested Capital (TTM) | 14.75% | 15.97% |
| Net Profit Margin (TTM) | 8.64% | 6.98% |
| Operating Profit Margin (TTM) | 11.29% | 9.99% |
| Gross Profit Margin (TTM) | 30.04% | 26.95% |
Financial Strength
Current Ratio
AIT
3.57
Industrial - Distribution Industry
- Max
- 3.57
- Q3
- 2.74
- Median
- 2.29
- Q1
- 1.94
- Min
- 1.33
AIT’s Current Ratio of 3.57 is in the upper quartile for the Industrial - Distribution industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
WSO
3.28
Industrial - Distribution Industry
- Max
- 3.57
- Q3
- 2.74
- Median
- 2.29
- Q1
- 1.94
- Min
- 1.33
WSO’s Current Ratio of 3.28 is in the upper quartile for the Industrial - Distribution industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
AIT
0.31
Industrial - Distribution Industry
- Max
- 1.67
- Q3
- 1.26
- Median
- 0.77
- Q1
- 0.30
- Min
- 0.13
AIT’s Debt-to-Equity Ratio of 0.31 is typical for the Industrial - Distribution industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
WSO
0.17
Industrial - Distribution Industry
- Max
- 1.67
- Q3
- 1.26
- Median
- 0.77
- Q1
- 0.30
- Min
- 0.13
Falling into the lower quartile for the Industrial - Distribution industry, WSO’s Debt-to-Equity Ratio of 0.17 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AIT
29.81
Industrial - Distribution Industry
- Max
- 34.29
- Q3
- 28.91
- Median
- 12.63
- Q1
- 3.84
- Min
- -0.41
AIT’s Interest Coverage Ratio of 29.81 is in the upper quartile for the Industrial - Distribution industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
WSO
--
Industrial - Distribution Industry
- Max
- 34.29
- Q3
- 28.91
- Median
- 12.63
- Q1
- 3.84
- Min
- -0.41
Interest Coverage Ratio data for WSO is currently unavailable.
Financial Strength at a Glance
| Symbol | AIT | WSO |
|---|---|---|
| Current Ratio (TTM) | 3.57 | 3.28 |
| Quick Ratio (TTM) | 2.51 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 0.31 | 0.17 |
| Debt-to-Asset Ratio (TTM) | 0.18 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.40 | 0.04 |
| Interest Coverage Ratio (TTM) | 29.81 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIT and WSO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AIT
0.68%
Industrial - Distribution Industry
- Max
- 3.95%
- Q3
- 2.10%
- Median
- 0.82%
- Q1
- 0.00%
- Min
- 0.00%
AIT’s Dividend Yield of 0.68% is consistent with its peers in the Industrial - Distribution industry, providing a dividend return that is standard for its sector.
WSO
2.43%
Industrial - Distribution Industry
- Max
- 3.95%
- Q3
- 2.10%
- Median
- 0.82%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.43%, WSO offers a more attractive income stream than most of its peers in the Industrial - Distribution industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AIT
11.02%
Industrial - Distribution Industry
- Max
- 88.24%
- Q3
- 56.62%
- Median
- 19.45%
- Q1
- 0.00%
- Min
- 0.00%
AIT’s Dividend Payout Ratio of 11.02% is within the typical range for the Industrial - Distribution industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
WSO
82.33%
Industrial - Distribution Industry
- Max
- 88.24%
- Q3
- 56.62%
- Median
- 19.45%
- Q1
- 0.00%
- Min
- 0.00%
WSO’s Dividend Payout Ratio of 82.33% is in the upper quartile for the Industrial - Distribution industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AIT | WSO |
|---|---|---|
| Dividend Yield (TTM) | 0.68% | 2.43% |
| Dividend Payout Ratio (TTM) | 11.02% | 82.33% |
Valuation
Price-to-Earnings Ratio
AIT
24.27
Industrial - Distribution Industry
- Max
- 53.67
- Q3
- 39.13
- Median
- 26.86
- Q1
- 22.49
- Min
- 12.77
AIT’s P/E Ratio of 24.27 is within the middle range for the Industrial - Distribution industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
WSO
32.62
Industrial - Distribution Industry
- Max
- 53.67
- Q3
- 39.13
- Median
- 26.86
- Q1
- 22.49
- Min
- 12.77
WSO’s P/E Ratio of 32.62 is within the middle range for the Industrial - Distribution industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AIT
3.61
Industrial - Distribution Industry
- Max
- 4.88
- Q3
- 3.36
- Median
- 2.85
- Q1
- 1.53
- Min
- 0.12
A Forward PEG Ratio of 3.61 places AIT in the upper quartile for the Industrial - Distribution industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
WSO
3.32
Industrial - Distribution Industry
- Max
- 4.88
- Q3
- 3.36
- Median
- 2.85
- Q1
- 1.53
- Min
- 0.12
WSO’s Forward PEG Ratio of 3.32 is within the middle range of its peers in the Industrial - Distribution industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AIT
2.08
Industrial - Distribution Industry
- Max
- 2.87
- Q3
- 2.21
- Median
- 1.42
- Q1
- 0.77
- Min
- 0.17
AIT’s P/S Ratio of 2.08 aligns with the market consensus for the Industrial - Distribution industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
WSO
2.45
Industrial - Distribution Industry
- Max
- 2.87
- Q3
- 2.21
- Median
- 1.42
- Q1
- 0.77
- Min
- 0.17
WSO’s P/S Ratio of 2.45 is in the upper echelon for the Industrial - Distribution industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AIT
5.16
Industrial - Distribution Industry
- Max
- 13.04
- Q3
- 7.19
- Median
- 3.64
- Q1
- 2.91
- Min
- 0.74
AIT’s P/B Ratio of 5.16 is within the conventional range for the Industrial - Distribution industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
WSO
6.48
Industrial - Distribution Industry
- Max
- 13.04
- Q3
- 7.19
- Median
- 3.64
- Q1
- 2.91
- Min
- 0.74
WSO’s P/B Ratio of 6.48 is within the conventional range for the Industrial - Distribution industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AIT | WSO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.27 | 32.62 |
| Forward PEG Ratio (TTM) | 3.61 | 3.32 |
| Price-to-Sales Ratio (P/S, TTM) | 2.08 | 2.45 |
| Price-to-Book Ratio (P/B, TTM) | 5.16 | 6.48 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 21.33 | 40.33 |
| EV-to-EBITDA (TTM) | 17.64 | 23.57 |
| EV-to-Sales (TTM) | 2.13 | 2.45 |