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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.

Company profile comparison for Howmet Aerospace (HWM) and Watsco (WSO.B)
Profile ItemHWMWSO.B
NameHowmet Aerospace Inc.Watsco 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 Capitalization81.84 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateNovember 1, 2016March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

HWM
WSO.B
GSPC
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Howmet Aerospace (HWM) 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 Howmet Aerospace (HWM) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.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

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

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.

Risk profile metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.B
Volatility (1Y, Annualized)37.60%40.28%
Beta (5Y)1.270.64
Max Drawdown (5Y)-36.47%-43.41%
Avg. Volume (3M)3.47M74

Risk-Adjusted Performance

Risk-Return Positioning

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HWM 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 Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.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%
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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

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%
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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

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%
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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.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.

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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

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.

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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.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
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Howmet Aerospace (HWM) 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 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
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Howmet Aerospace (HWM) 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 Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.B
Current Ratio (MRQ)1.863.15
Debt / Equity (MRQ)0.800.16
Net Debt / EBITDA1.35-0.14

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%
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Howmet Aerospace (HWM) 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 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%
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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.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
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Howmet Aerospace (HWM) 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 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
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Howmet Aerospace (HWM) 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 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
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Howmet Aerospace (HWM) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Howmet Aerospace (HWM) and Watsco (WSO.B)
MetricHWMWSO.B
P/E Ratio (TTM)40.3527.26
P/S Ratio (TTM)8.411.74
P/B Ratio (MRQ)14.203.99
Free Cash Flow Yield (TTM)1.58%3.50%