AIT vs. WSO.B: Applied Industrial vs. Watsco Stock Comparison

November 11, 2026

How do Applied Industrial (AIT) and Watsco (WSO.B) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Industrial (AIT) and Watsco (WSO.B) are both classified in the Trading Companies & Distributors sub-industry within the broader Trading Companies & Distributors industry, placing them in the closest GICS peer bucket.

Company profile comparison for Applied Industrial (AIT) and Watsco (WSO.B)
Profile Item	AIT	WSO.B
Name	Applied Industrial Technologies Inc.	Watsco Inc. Class B Common Stock
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Trading Companies & Distributors	Trading Companies & Distributors
GICS Sub-Industry	Trading Companies & Distributors	Trading Companies & Distributors
Market Capitalization	10.35 billion USD	12.92 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	March 17, 1980
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AIT

WSO.B

GSPC

Applied Industrial (AIT) vs. Watsco (WSO.B), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Industrial (AIT) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Industrial (AIT) and Watsco (WSO.B). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Total Return (1Y)	15.62%	-11.21%
Total Return (3Y, Annualized)	24.49%	-3.05%
Total Return (5Y, Annualized)	24.56%	4.30%

Risk Profile

Drawdown History

AIT

WSO.B

GSPC

Applied Industrial (AIT) vs. Watsco (WSO.B), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Industrial (AIT) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Volatility (1Y, Annualized)	28.72%	40.28%
Beta (5Y)	0.86	0.64
Max Drawdown (5Y)	-26.42%	-43.41%
Avg. Volume (3M)	295.41K	74

Risk-Adjusted Performance

Risk-Return Positioning

AIT and WSO.B are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Sharpe Ratio (1Y)	0.39	-0.38
Sortino Ratio (1Y)	0.53	-0.57

Profitability

ROE (TTM)

Applied Industrial (AIT) at 22.51% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for AIT.

AIT

Capital Goods industry group

22.51%

Max: 40.55%
AIT: 22.51%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

WSO.B

Capital Goods industry group

16.21%

Max: 40.55%
Q3: 19.29%
WSO.B: 16.21%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Applied Industrial (AIT) at 8.39% and Watsco (WSO.B) at 6.31% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

AIT

Capital Goods industry group

8.39%

Max: 27.47%
Q3: 12.10%
AIT: 8.39%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

WSO.B

Capital Goods industry group

6.31%

Max: 27.47%
Q3: 12.10%
WSO.B: 6.31%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Applied Industrial (AIT) at 11.12% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

AIT

Capital Goods industry group

11.12%

Max: 36.60%
Q3: 18.33%
AIT: 11.12%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

WSO.B

Capital Goods industry group

10.14%

Max: 36.60%
Q3: 18.33%
Median: 11.12%
WSO.B: 10.14%
Q1: 5.14%
Min: -12.63%

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
ROE (TTM)	22.51%	16.21%
ROA (TTM)	11.43%	8.27%
Net Margin (TTM)	8.39%	6.31%
Operating Margin (TTM)	11.12%	10.14%
Gross Margin (TTM)	30.40%	27.18%

Growth

Revenue Growth

Applied Industrial (AIT) at 8.84% is around its peer norm for revenue growth, while Watsco (WSO.B) at -4.98% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Watsco (WSO.B) reports EPS growth of -7.47%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Revenue Growth (YoY)	8.84%	-4.98%
Revenue Growth (3Y CAGR)	4.02%	-0.16%
EPS Growth (YoY)	--	-7.47%
EPS Growth (3Y CAGR)	7.40%	-6.89%

Financial Strength

Current Ratio (MRQ)

Applied Industrial (AIT) at 2.89 keeps current ratio within its industry’s typical mid-range, while Watsco (WSO.B) at 3.15 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

AIT

Capital Goods industry group

2.89

Max: 5.22
Q3: 2.95
AIT: 2.89
Median: 2.08
Q1: 1.43
Min: 0.36

WSO.B

Capital Goods industry group

3.15

Max: 5.22
WSO.B: 3.15
Q3: 2.95
Median: 2.08
Q1: 1.43
Min: 0.36

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both Applied Industrial (AIT) at 0.15 and Watsco (WSO.B) at 0.16 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.

AIT

Capital Goods industry group

0.15

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
AIT: 0.15
Min: 0.00

WSO.B

Capital Goods industry group

0.16

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
WSO.B: 0.16
Min: 0.00

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Current Ratio (MRQ)	2.89	3.15
Debt / Equity (MRQ)	0.15	0.16
Net Debt / EBITDA	0.27	-0.14

Dividends

Dividend Yield (TTM)

Applied Industrial (AIT) at 0.71% pays an industry-typical yield; Watsco (WSO.B) at 4.02% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

AIT

Capital Goods industry group

0.71%

Max: 2.66%
Q3: 1.14%
AIT: 0.71%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

WSO.B

Capital Goods industry group

4.02%

WSO.B: 4.02%
Max: 2.66%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Applied Industrial (AIT) reports 17.63%, ranking against industry peers normally.

AIT

Capital Goods industry group

17.63%

Max: 67.39%
Q3: 28.02%
AIT: 17.63%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

WSO.B

Capital Goods industry group

109.66%

WSO.B: 109.66%
Max: 67.39%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
Dividend Yield (TTM)	0.71%	4.02%
Dividend Payout Ratio (TTM)	17.63%	109.66%

Valuation

P/E Ratio (TTM)

Both Applied Industrial (AIT) at 25.10 and Watsco (WSO.B) at 27.26 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AIT

Capital Goods industry group

25.10

Max: 59.38
Q3: 35.92
Median: 25.41
AIT: 25.10
Q1: 19.47
Min: 3.03

WSO.B

Capital Goods industry group

27.26

Max: 59.38
Q3: 35.92
WSO.B: 27.26
Median: 25.41
Q1: 19.47
Min: 3.03

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Industrial (AIT) at 2.05 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AIT

Capital Goods industry group

2.05

Max: 7.54
Q3: 3.76
Median: 2.15
AIT: 2.05
Q1: 1.03
Min: 0.03

WSO.B

Capital Goods industry group

1.74

Max: 7.54
Q3: 3.76
Median: 2.15
WSO.B: 1.74
Q1: 1.03
Min: 0.03

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watsco (WSO.B) at 3.99 is valued about in line with its industry on P/B ratio, while Applied Industrial (AIT) at 5.50 carries an above-peer premium to book — AIT is pricier on assets.

AIT

Capital Goods industry group

5.50

Max: 9.66
AIT: 5.50
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

WSO.B

Capital Goods industry group

3.99

Max: 9.66
Q3: 5.00
WSO.B: 3.99
Median: 3.12
Q1: 1.81
Min: -1.08

Applied Industrial (AIT) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Industrial (AIT) and Watsco (WSO.B)
Metric	AIT	WSO.B
P/E Ratio (TTM)	25.10	27.26
P/S Ratio (TTM)	2.05	1.74
P/B Ratio (MRQ)	5.50	3.99
Free Cash Flow Yield (TTM)	3.24%	3.50%