Seek Returns logo

AME vs. WSO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AME and WSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAMEWSO
Company NameAMETEK, Inc.Watsco, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryElectrical EquipmentTrading Companies & Distributors
Market Capitalization43.08 billion USD16.72 billion USD
ExchangeNYSENYSE
Listing DateJuly 19, 1984June 7, 1984
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AME 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.

AME vs. WSO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAMEWSO
5-Day Price Return1.70%0.75%
13-Week Price Return3.17%-11.18%
26-Week Price Return0.19%-18.05%
52-Week Price Return10.83%-15.22%
Month-to-Date Return0.92%-9.36%
Year-to-Date Return3.49%-13.76%
10-Day Avg. Volume1.21M0.30M
3-Month Avg. Volume1.32M0.33M
3-Month Volatility17.68%27.59%
Beta1.120.95

Profitability

Return on Equity (TTM)

AME

14.53%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

AME’s Return on Equity of 14.53% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

WSO

19.73%

Trading Companies & Distributors Industry

Max
32.33%
Q3
19.92%
Median
14.05%
Q1
11.46%
Min
0.91%

WSO’s Return on Equity of 19.73% is on par with the norm for the Trading Companies & Distributors industry, indicating its profitability relative to shareholder equity is typical for the sector.

AME vs. WSO: A comparison of their Return on Equity (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Net Profit Margin (TTM)

AME

20.60%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

AME’s Net Profit Margin of 20.60% is exceptionally high, placing it well beyond the typical range for the Electrical Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

WSO

7.08%

Trading Companies & Distributors Industry

Max
17.73%
Q3
10.81%
Median
6.13%
Q1
4.33%
Min
2.09%

WSO’s Net Profit Margin of 7.08% is aligned with the median group of its peers in the Trading Companies & Distributors industry. This indicates its ability to convert revenue into profit is typical for the sector.

AME vs. WSO: A comparison of their Net Profit Margin (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Operating Profit Margin (TTM)

AME

26.24%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

AME’s Operating Profit Margin of 26.24% is exceptionally high, placing it well above the typical range for the Electrical Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

WSO

10.26%

Trading Companies & Distributors Industry

Max
25.50%
Q3
15.13%
Median
7.46%
Q1
5.44%
Min
3.55%

WSO’s Operating Profit Margin of 10.26% is around the midpoint for the Trading Companies & Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.

AME vs. WSO: A comparison of their Operating Profit Margin (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Profitability at a Glance

SymbolAMEWSO
Return on Equity (TTM)14.53%19.73%
Return on Assets (TTM)9.66%11.69%
Net Profit Margin (TTM)20.60%7.08%
Operating Profit Margin (TTM)26.24%10.26%
Gross Profit Margin (TTM)36.12%27.54%

Financial Strength

Current Ratio (MRQ)

AME

1.63

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

AME’s Current Ratio of 1.63 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

WSO

3.08

Trading Companies & Distributors Industry

Max
2.82
Q3
2.13
Median
1.60
Q1
1.43
Min
0.46

WSO’s Current Ratio of 3.08 is exceptionally high, placing it well outside the typical range for the Trading Companies & Distributors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

AME vs. WSO: A comparison of their Current Ratio (MRQ) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AME

0.19

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

Falling into the lower quartile for the Electrical Equipment industry, AME’s Debt-to-Equity Ratio of 0.19 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

WSO

0.01

Trading Companies & Distributors Industry

Max
1.88
Q3
1.18
Median
0.74
Q1
0.54
Min
0.00

Falling into the lower quartile for the Trading Companies & Distributors industry, WSO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AME vs. WSO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Interest Coverage Ratio (TTM)

AME

15.71

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

AME’s Interest Coverage Ratio of 15.71 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

WSO

140.00

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.75
Q1
2.70
Min
-1.67

With an Interest Coverage Ratio of 140.00, WSO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.

AME vs. WSO: A comparison of their Interest Coverage Ratio (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Financial Strength at a Glance

SymbolAMEWSO
Current Ratio (MRQ)1.633.08
Quick Ratio (MRQ)1.041.26
Debt-to-Equity Ratio (MRQ)0.190.01
Interest Coverage Ratio (TTM)15.71140.00

Growth

Revenue Growth

AME vs. WSO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AME vs. WSO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AME

0.64%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

AME’s Dividend Yield of 0.64% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

WSO

2.58%

Trading Companies & Distributors Industry

Max
4.99%
Q3
3.04%
Median
1.94%
Q1
1.22%
Min
0.00%

WSO’s Dividend Yield of 2.58% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.

AME vs. WSO: A comparison of their Dividend Yield (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Dividend Payout Ratio (TTM)

AME

18.94%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

AME’s Dividend Payout Ratio of 18.94% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

WSO

84.37%

Trading Companies & Distributors Industry

Max
95.14%
Q3
62.08%
Median
51.17%
Q1
26.24%
Min
0.00%

WSO’s Dividend Payout Ratio of 84.37% is in the upper quartile for the Trading Companies & Distributors 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.

AME vs. WSO: A comparison of their Dividend Payout Ratio (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Dividend at a Glance

SymbolAMEWSO
Dividend Yield (TTM)0.64%2.58%
Dividend Payout Ratio (TTM)18.94%84.37%

Valuation

Price-to-Earnings Ratio (TTM)

AME

29.53

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

AME’s P/E Ratio of 29.53 is within the middle range for the Electrical Equipment 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

32.64

Trading Companies & Distributors Industry

Max
48.55
Q3
26.73
Median
17.17
Q1
10.78
Min
1.62

A P/E Ratio of 32.64 places WSO in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AME vs. WSO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Price-to-Sales Ratio (TTM)

AME

6.08

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

AME’s P/S Ratio of 6.08 is in the upper echelon for the Electrical Equipment 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.

WSO

2.31

Trading Companies & Distributors Industry

Max
4.88
Q3
2.56
Median
1.02
Q1
0.60
Min
0.29

WSO’s P/S Ratio of 2.31 aligns with the market consensus for the Trading Companies & Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AME vs. WSO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Price-to-Book Ratio (MRQ)

AME

4.02

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

AME’s P/B Ratio of 4.02 is within the conventional range for the Electrical Equipment 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

6.47

Trading Companies & Distributors Industry

Max
8.77
Q3
4.33
Median
2.00
Q1
1.11
Min
0.35

WSO’s P/B Ratio of 6.47 is in the upper tier for the Trading Companies & Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AME vs. WSO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electrical Equipment and Trading Companies & Distributors industry benchmarks.

Valuation at a Glance

SymbolAMEWSO
Price-to-Earnings Ratio (TTM)29.5332.64
Price-to-Sales Ratio (TTM)6.082.31
Price-to-Book Ratio (MRQ)4.026.47
Price-to-Free Cash Flow Ratio (TTM)25.2223.35