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GWW vs. WSO.B: W.W. Grainger vs. Watsco Stock Comparison

How do W.W. Grainger (GWW) 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

W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Watsco (WSO.B)
Profile ItemGWWWSO.B
NameW.W. Grainger Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryTrading Companies & DistributorsTrading Companies & Distributors
GICS Sub-IndustryTrading Companies & DistributorsTrading Companies & Distributors
Market Capitalization67.45 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GWW
WSO.B
GSPC
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Total Return (1Y)54.07%-11.21%
Total Return (3Y, Annualized)24.16%-3.05%
Total Return (5Y, Annualized)25.95%4.30%

Risk Profile

Drawdown History

GWW
WSO.B
GSPC
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Volatility (1Y, Annualized)24.49%40.28%
Beta (5Y)0.930.64
Max Drawdown (5Y)-24.50%-43.41%
Avg. Volume (3M)250.35K74

Risk-Adjusted Performance

Risk-Return Positioning

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GWW 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 W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Sharpe Ratio (1Y)2.03-0.38
Sortino Ratio (1Y)3.31-0.57

Profitability

ROE (TTM)

W.W. Grainger (GWW) at 52.33% clears its industry range for ROE, a sharper capital-efficiency signal than Watsco (WSO.B) at 16.21%, which is closer to a typical peer reading.

GWW

Capital Goods industry group

52.33%

GWW
52.33%
Max
40.55%
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%
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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both W.W. Grainger (GWW) at 11.17% 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.

GWW

Capital Goods industry group

11.17%

Max
27.47%
Q3
12.10%
GWW
11.17%
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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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both W.W. Grainger (GWW) at 16.14% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

GWW

Capital Goods industry group

16.14%

Max
36.60%
Q3
18.33%
GWW
16.14%
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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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
ROE (TTM)52.33%16.21%
ROA (TTM)20.34%8.27%
Net Margin (TTM)11.17%6.31%
Operating Margin (TTM)16.14%10.14%
Gross Margin (TTM)39.43%27.18%

Growth

Revenue Growth

W.W. Grainger (GWW) at 4.51% 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.

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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both W.W. Grainger (GWW) at -8.55% 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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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Revenue Growth (YoY)4.51%-4.98%
Revenue Growth (3Y CAGR)5.62%-0.16%
EPS Growth (YoY)-8.55%-7.47%
EPS Growth (3Y CAGR)5.60%-6.89%

Financial Strength

Current Ratio (MRQ)

W.W. Grainger (GWW) at 2.61 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.

GWW

Capital Goods industry group

2.61

Max
5.22
Q3
2.95
GWW
2.61
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
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) at 0.65 runs a more typical debt-to-equity mix.

GWW

Capital Goods industry group

0.65

Max
2.33
Q3
1.12
GWW
0.65
Median
0.60
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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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Current Ratio (MRQ)2.613.15
Debt / Equity (MRQ)0.650.16
Net Debt / EBITDA0.69-0.14

Dividends

Dividend Yield (TTM)

W.W. Grainger (GWW) at 0.65% 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.

GWW

Capital Goods industry group

0.65%

Max
2.66%
Q3
1.14%
GWW
0.65%
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%
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) reports 20.87%, ranking against industry peers normally.

GWW

Capital Goods industry group

20.87%

Max
67.39%
Q3
28.02%
GWW
20.87%
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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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
Dividend Yield (TTM)0.65%4.02%
Dividend Payout Ratio (TTM)20.87%109.66%

Valuation

P/E Ratio (TTM)

Both W.W. Grainger (GWW) at 31.66 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.

GWW

Capital Goods industry group

31.66

Max
59.38
Q3
35.92
GWW
31.66
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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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) at 3.48 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

GWW

Capital Goods industry group

3.48

Max
7.54
Q3
3.76
GWW
3.48
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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W.W. Grainger (GWW) 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 sits near its industry’s typical P/B ratio, while W.W. Grainger (GWW) at 15.56 prices above its benchmark range — GWW looks rich relative to book.

GWW

Capital Goods industry group

15.56

GWW
15.56
Max
9.66
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
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W.W. Grainger (GWW) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for W.W. Grainger (GWW) and Watsco (WSO.B)
MetricGWWWSO.B
P/E Ratio (TTM)31.6627.26
P/S Ratio (TTM)3.481.74
P/B Ratio (MRQ)15.563.99
Free Cash Flow Yield (TTM)1.97%3.50%