HWM vs. WSO.B: Howmet Aerospace vs. Watsco Stock Comparison
How do Howmet Aerospace (HWM) 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
Howmet Aerospace (HWM) and Watsco (WSO.B) both fall under the Capital Goods industry group, but HWM is classified in Aerospace & Defense while WSO.B is classified in Trading Companies & Distributors.
| Profile Item | HWM | WSO.B |
|---|---|---|
| Name | Howmet Aerospace 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 | Aerospace & Defense | Trading Companies & Distributors |
| GICS Sub-Industry | Aerospace & Defense | Trading Companies & Distributors |
| Market Capitalization | 81.84 billion USD | 12.92 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 1, 2016 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| Total Return (1Y) | 5.06% | -11.21% |
| Total Return (3Y, Annualized) | 64.83% | -3.05% |
| Total Return (5Y, Annualized) | 46.04% | 4.30% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Howmet Aerospace (HWM) trades around 3.47M 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.
| Metric | HWM | WSO.B |
|---|---|---|
| Volatility (1Y, Annualized) | 37.60% | 40.28% |
| Beta (5Y) | 1.27 | 0.64 |
| Max Drawdown (5Y) | -36.47% | -43.41% |
| Avg. Volume (3M) | 3.47M | 74 |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| Sharpe Ratio (1Y) | 0.02 | -0.38 |
| Sortino Ratio (1Y) | 0.03 | -0.57 |
Profitability
ROE (TTM)
Howmet Aerospace (HWM) at 37.65% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for HWM.
HWM
Capital Goods industry group
37.65%
- Max
- 40.55%
- HWM
- 37.65%
- 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%
Net Margin (TTM)
Howmet Aerospace (HWM) at 21.10% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.
HWM
Capital Goods industry group
21.10%
- Max
- 27.47%
- HWM
- 21.10%
- 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%
Operating Margin (TTM)
Howmet Aerospace (HWM) at 28.78% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.
HWM
Capital Goods industry group
28.78%
- Max
- 36.60%
- HWM
- 28.78%
- 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%
Profitability Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| ROE (TTM) | 37.65% | 16.21% |
| ROA (TTM) | 13.97% | 8.27% |
| Net Margin (TTM) | 21.10% | 6.31% |
| Operating Margin (TTM) | 28.78% | 10.14% |
| Gross Margin (TTM) | 36.63% | 27.18% |
Growth
Revenue Growth
Howmet Aerospace (HWM) at 11.06% 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.
EPS Growth
Howmet Aerospace (HWM) at 32.03% 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 HWM.
Growth Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| Revenue Growth (YoY) | 11.06% | -4.98% |
| Revenue Growth (3Y CAGR) | 13.37% | -0.16% |
| EPS Growth (YoY) | 32.03% | -7.47% |
| EPS Growth (3Y CAGR) | 49.51% | -6.89% |
Financial Strength
Current Ratio (MRQ)
Howmet Aerospace (HWM) at 1.86 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.
HWM
Capital Goods industry group
1.86
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- HWM
- 1.86
- 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
Debt / Equity (MRQ)
Watsco (WSO.B) at 0.16 keeps leverage in the lower industry quartile, while Howmet Aerospace (HWM) at 0.80 runs a more typical debt-to-equity mix.
HWM
Capital Goods industry group
0.80
- Max
- 2.33
- Q3
- 1.12
- HWM
- 0.80
- 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
Financial Strength Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| Current Ratio (MRQ) | 1.86 | 3.15 |
| Debt / Equity (MRQ) | 0.80 | 0.16 |
| Net Debt / EBITDA | 1.35 | -0.14 |
Dividends
Dividend Yield (TTM)
Howmet Aerospace (HWM) at 0.25% 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.
HWM
Capital Goods industry group
0.25%
- Max
- 2.66%
- Q3
- 1.14%
- HWM
- 0.25%
- 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%
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 Howmet Aerospace (HWM) reports 9.80%, ranking against industry peers normally.
HWM
Capital Goods industry group
9.80%
- Max
- 67.39%
- Q3
- 28.02%
- HWM
- 9.80%
- 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%
Dividend Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| Dividend Yield (TTM) | 0.25% | 4.02% |
| Dividend Payout Ratio (TTM) | 9.80% | 109.66% |
Valuation
P/E Ratio (TTM)
Watsco (WSO.B) at 27.26 is near its industry’s usual P/E ratio, while Howmet Aerospace (HWM) at 40.35 sits in the richer quartile — HWM needs stronger growth or earnings quality to justify the premium.
HWM
Capital Goods industry group
40.35
- Max
- 59.38
- HWM
- 40.35
- 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
P/S Ratio (TTM)
Watsco (WSO.B) at 1.74 prices around its industry’s typical P/S ratio, while Howmet Aerospace (HWM) at 8.41 clears its benchmark range — HWM looks notably rich on sales.
HWM
Capital Goods industry group
8.41
- HWM
- 8.41
- 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
P/B Ratio (MRQ)
Watsco (WSO.B) at 3.99 sits near its industry’s typical P/B ratio, while Howmet Aerospace (HWM) at 14.20 prices above its benchmark range — HWM looks rich relative to book.
HWM
Capital Goods industry group
14.20
- HWM
- 14.20
- 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
Valuation Metrics
| Metric | HWM | WSO.B |
|---|---|---|
| P/E Ratio (TTM) | 40.35 | 27.26 |
| P/S Ratio (TTM) | 8.41 | 1.74 |
| P/B Ratio (MRQ) | 14.20 | 3.99 |
| Free Cash Flow Yield (TTM) | 1.58% | 3.50% |