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HEI vs. WSO.B: HEICO vs. Watsco Stock Comparison

How do HEICO (HEI) 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

HEICO (HEI) and Watsco (WSO.B) both fall under the Capital Goods industry group, but HEI is classified in Aerospace & Defense while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for HEICO (HEI) and Watsco (WSO.B)
Profile ItemHEIWSO.B
NameHEICO CorporationWatsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryAerospace & DefenseTrading Companies & Distributors
GICS Sub-IndustryAerospace & DefenseTrading Companies & Distributors
Market Capitalization46.49 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

HEI
WSO.B
GSPC
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HEICO (HEI) 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 HEICO (HEI) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Total Return (1Y)6.50%-11.21%
Total Return (3Y, Annualized)28.48%-3.05%
Total Return (5Y, Annualized)18.19%4.30%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Volatility (1Y, Annualized)33.37%40.28%
Beta (5Y)1.060.64
Max Drawdown (5Y)-27.11%-43.41%
Avg. Volume (3M)480.74K74

Risk-Adjusted Performance

Risk-Return Positioning

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HEI 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 HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Sharpe Ratio (1Y)0.07-0.38
Sortino Ratio (1Y)0.10-0.57

Profitability

ROE (TTM)

Both HEICO (HEI) at 17.73% 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.

HEI

Capital Goods industry group

17.73%

Max
40.55%
Q3
19.29%
HEI
17.73%
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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

HEICO (HEI) at 16.38% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.

HEI

Capital Goods industry group

16.38%

Max
27.47%
HEI
16.38%
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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

HEICO (HEI) at 25.14% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.

HEI

Capital Goods industry group

25.14%

Max
36.60%
HEI
25.14%
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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
ROE (TTM)17.73%16.21%
ROA (TTM)8.50%8.27%
Net Margin (TTM)16.38%6.31%
Operating Margin (TTM)25.14%10.14%
Gross Margin (TTM)40.40%27.18%

Growth

Revenue Growth

HEICO (HEI) at 16.26% 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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

HEICO (HEI) at 33.52% sits in the top EPS growth quartile, while Watsco (WSO.B) at -7.47% is closer to the peer norm — faster per-share earnings growth for HEI.

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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Revenue Growth (YoY)16.26%-4.98%
Revenue Growth (3Y CAGR)26.64%-0.16%
EPS Growth (YoY)33.52%-7.47%
EPS Growth (3Y CAGR)24.32%-6.89%

Financial Strength

Current Ratio (MRQ)

HEICO (HEI) at 2.72 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.

HEI

Capital Goods industry group

2.72

Max
5.22
Q3
2.95
HEI
2.72
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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HEICO (HEI) 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 HEICO (HEI) at 0.45 runs a more typical debt-to-equity mix.

HEI

Capital Goods industry group

0.45

Max
2.33
Q3
1.12
Median
0.60
HEI
0.45
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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HEICO (HEI) 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 HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Current Ratio (MRQ)2.723.15
Debt / Equity (MRQ)0.450.16
Net Debt / EBITDA1.56-0.14

Dividends

Dividend Yield (TTM)

HEICO (HEI) at 0.08% 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.

HEI

Capital Goods industry group

0.08%

Max
2.66%
Q3
1.14%
Median
0.24%
HEI
0.08%
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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HEICO (HEI) 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 HEICO (HEI) reports 4.17%, ranking against industry peers normally.

HEI

Capital Goods industry group

4.17%

Max
67.39%
Q3
28.02%
Median
6.86%
HEI
4.17%
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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
Dividend Yield (TTM)0.08%4.02%
Dividend Payout Ratio (TTM)4.17%109.66%

Valuation

P/E Ratio (TTM)

Watsco (WSO.B) at 27.26 is near its industry’s usual P/E ratio, while HEICO (HEI) at 55.44 sits in the richer quartile — HEI needs stronger growth or earnings quality to justify the premium.

HEI

Capital Goods industry group

55.44

Max
59.38
HEI
55.44
Q3
35.92
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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HEICO (HEI) 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 prices around its industry’s typical P/S ratio, while HEICO (HEI) at 8.98 clears its benchmark range — HEI looks notably rich on sales.

HEI

Capital Goods industry group

8.98

HEI
8.98
Max
7.54
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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HEICO (HEI) 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 HEICO (HEI) at 9.40 carries an above-peer premium to book — HEI is pricier on assets.

HEI

Capital Goods industry group

9.40

Max
9.66
HEI
9.40
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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HEICO (HEI) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for HEICO (HEI) and Watsco (WSO.B)
MetricHEIWSO.B
P/E Ratio (TTM)55.4427.26
P/S Ratio (TTM)8.981.74
P/B Ratio (MRQ)9.403.99
Free Cash Flow Yield (TTM)1.82%3.50%