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LECO vs. WSO.B: Lincoln Electric vs. Watsco Stock Comparison

How do Lincoln Electric (LECO) 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

Lincoln Electric (LECO) and Watsco (WSO.B) both fall under the Capital Goods industry group, but LECO is classified in Machinery while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Lincoln Electric (LECO) and Watsco (WSO.B)
Profile ItemLECOWSO.B
NameLincoln Electric Holdings, Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryTrading Companies & Distributors
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsTrading Companies & Distributors
Market Capitalization14.91 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateApril 7, 1994March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LECO
WSO.B
GSPC
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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Total Return (1Y)27.30%-11.21%
Total Return (3Y, Annualized)17.31%-3.05%
Total Return (5Y, Annualized)16.33%4.30%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Volatility (1Y, Annualized)31.13%40.28%
Beta (5Y)1.170.64
Max Drawdown (5Y)-34.29%-43.41%
Avg. Volume (3M)409.99K74

Risk-Adjusted Performance

Risk-Return Positioning

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LECO 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 Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Sharpe Ratio (1Y)0.74-0.38
Sortino Ratio (1Y)1.11-0.57

Profitability

ROE (TTM)

Lincoln Electric (LECO) at 38.75% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for LECO.

LECO

Capital Goods industry group

38.75%

Max
40.55%
LECO
38.75%
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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Lincoln Electric (LECO) at 12.40% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.

LECO

Capital Goods industry group

12.40%

Max
27.47%
LECO
12.40%
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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Lincoln Electric (LECO) at 18.29% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

LECO

Capital Goods industry group

18.29%

Max
36.60%
Q3
18.33%
LECO
18.29%
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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
ROE (TTM)38.75%16.21%
ROA (TTM)13.32%8.27%
Net Margin (TTM)12.40%6.31%
Operating Margin (TTM)18.29%10.14%
Gross Margin (TTM)35.54%27.18%

Growth

Revenue Growth

Lincoln Electric (LECO) at 5.60% 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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Lincoln Electric (LECO) at 14.36% 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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Revenue Growth (YoY)5.60%-4.98%
Revenue Growth (3Y CAGR)4.02%-0.16%
EPS Growth (YoY)14.36%-7.47%
EPS Growth (3Y CAGR)5.05%-6.89%

Financial Strength

Current Ratio (MRQ)

Lincoln Electric (LECO) at 1.91 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.

LECO

Capital Goods industry group

1.91

Max
5.22
Q3
2.95
Median
2.08
LECO
1.91
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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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) at 0.78 runs a more typical debt-to-equity mix.

LECO

Capital Goods industry group

0.78

Max
2.33
Q3
1.12
LECO
0.78
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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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Current Ratio (MRQ)1.913.15
Debt / Equity (MRQ)0.780.16
Net Debt / EBITDA1.00-0.14

Dividends

Dividend Yield (TTM)

Lincoln Electric (LECO) at 1.16% earns its spot in the top quartile of its industry’s yields; Watsco (WSO.B) at 4.02% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.

LECO

Capital Goods industry group

1.16%

Max
2.66%
LECO
1.16%
Q3
1.14%
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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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) reports 30.30%, ranking against industry peers normally.

LECO

Capital Goods industry group

30.30%

Max
67.39%
LECO
30.30%
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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
Dividend Yield (TTM)1.16%4.02%
Dividend Payout Ratio (TTM)30.30%109.66%

Valuation

P/E Ratio (TTM)

Both Lincoln Electric (LECO) at 26.40 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.

LECO

Capital Goods industry group

26.40

Max
59.38
Q3
35.92
LECO
26.40
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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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) at 3.21 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

LECO

Capital Goods industry group

3.21

Max
7.54
Q3
3.76
LECO
3.21
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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Lincoln Electric (LECO) 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 Lincoln Electric (LECO) at 9.59 carries an above-peer premium to book — LECO is pricier on assets.

LECO

Capital Goods industry group

9.59

Max
9.66
LECO
9.59
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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Lincoln Electric (LECO) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lincoln Electric (LECO) and Watsco (WSO.B)
MetricLECOWSO.B
P/E Ratio (TTM)26.4027.26
P/S Ratio (TTM)3.211.74
P/B Ratio (MRQ)9.593.99
Free Cash Flow Yield (TTM)2.68%3.50%