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EMR vs. WSO.B: Emerson Electric vs. Watsco Stock Comparison

How do Emerson Electric (EMR) 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

Emerson Electric (EMR) and Watsco (WSO.B) both fall under the Capital Goods industry group, but EMR is classified in Electrical Equipment while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Emerson Electric (EMR) and Watsco (WSO.B)
Profile ItemEMRWSO.B
NameEmerson Electric Co.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryElectrical EquipmentTrading Companies & Distributors
GICS Sub-IndustryElectrical Components & EquipmentTrading Companies & Distributors
Market Capitalization90.56 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 1, 1972March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

EMR
WSO.B
GSPC
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Emerson Electric (EMR) 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 Emerson Electric (EMR) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Total Return (1Y)34.39%-11.21%
Total Return (3Y, Annualized)28.46%-3.05%
Total Return (5Y, Annualized)14.17%4.30%

Risk Profile

Drawdown History

EMR
WSO.B
GSPC
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Emerson Electric (EMR) 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 Emerson Electric (EMR) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Emerson Electric (EMR) trades around 2.61M shares per day on average, while Watsco (WSO.B) sees only 74 — a volume gap that can matter for position sizing, exit liquidity, and order execution.

Risk profile metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Volatility (1Y, Annualized)32.47%40.28%
Beta (5Y)1.200.64
Max Drawdown (5Y)-29.61%-43.41%
Avg. Volume (3M)2.61M74

Risk-Adjusted Performance

Risk-Return Positioning

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EMR 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 Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Sharpe Ratio (1Y)0.93-0.38
Sortino Ratio (1Y)1.37-0.57

Profitability

ROE (TTM)

Both Emerson Electric (EMR) at 13.12% and Watsco (WSO.B) at 16.21% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

EMR

Capital Goods industry group

13.12%

Max
40.55%
Q3
19.29%
EMR
13.12%
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%
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Emerson Electric (EMR) at 14.18% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.

EMR

Capital Goods industry group

14.18%

Max
27.47%
EMR
14.18%
Q3
12.10%
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%
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Emerson Electric (EMR) at 25.90% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.

EMR

Capital Goods industry group

25.90%

Max
36.60%
EMR
25.90%
Q3
18.33%
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%
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
ROE (TTM)13.12%16.21%
ROA (TTM)5.98%8.27%
Net Margin (TTM)14.18%6.31%
Operating Margin (TTM)25.90%10.14%
Gross Margin (TTM)53.36%27.18%

Growth

Revenue Growth

Only one side can be read here: Watsco (WSO.B) reports revenue growth of -4.98%, ranked against its industry; Emerson Electric (EMR) has no revenue growth figure this period.

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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Emerson Electric (EMR) at 18.56% and Watsco (WSO.B) at -7.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Revenue Growth (YoY)---4.98%
Revenue Growth (3Y CAGR)---0.16%
EPS Growth (YoY)18.56%-7.47%
EPS Growth (3Y CAGR)-40.62%-6.89%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Emerson Electric (EMR) at 0.94 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

EMR

Capital Goods industry group

0.94

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
EMR
0.94
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
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watsco (WSO.B) at 0.16 keeps leverage in the lower industry quartile, while Emerson Electric (EMR) at 0.59 runs a more typical debt-to-equity mix.

EMR

Capital Goods industry group

0.59

Max
2.33
Q3
1.12
Median
0.60
EMR
0.59
Q1
0.29
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
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Emerson Electric (EMR) 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 Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Current Ratio (MRQ)0.943.15
Debt / Equity (MRQ)0.590.16
Net Debt / EBITDA1.89-0.14

Dividends

Dividend Yield (TTM)

Emerson Electric (EMR) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Watsco (WSO.B) reports a yield of 4.02%, ranking against industry peers normally.

EMR

Capital Goods industry group

0.00%

Max
2.66%
Q3
1.14%
Median
0.24%
EMR
0.00%
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%
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Emerson Electric (EMR) 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 Emerson Electric (EMR) reports 48.51%, ranking against industry peers normally.

EMR

Capital Goods industry group

48.51%

Max
67.39%
EMR
48.51%
Q3
28.02%
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%
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
Dividend Yield (TTM)0.00%4.02%
Dividend Payout Ratio (TTM)48.51%109.66%

Valuation

P/E Ratio (TTM)

Both Emerson Electric (EMR) at 33.89 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.

EMR

Capital Goods industry group

33.89

Max
59.38
Q3
35.92
EMR
33.89
Median
25.41
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
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Watsco (WSO.B) at 1.74 is priced about in line with its industry on P/S ratio, while Emerson Electric (EMR) at 4.77 sits in the pricier quartile — EMR costs more per dollar of sales.

EMR

Capital Goods industry group

4.77

Max
7.54
EMR
4.77
Q3
3.76
Median
2.15
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
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Emerson Electric (EMR) at 4.38 and Watsco (WSO.B) at 3.99 are valued close to their industries’ norm against book — neither stands out from peers.

EMR

Capital Goods industry group

4.38

Max
9.66
Q3
5.00
EMR
4.38
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
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Emerson Electric (EMR) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Emerson Electric (EMR) and Watsco (WSO.B)
MetricEMRWSO.B
P/E Ratio (TTM)33.8927.26
P/S Ratio (TTM)4.771.74
P/B Ratio (MRQ)4.383.99
Free Cash Flow Yield (TTM)3.85%3.50%