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PH vs. WSO.B: Parker-Hannifin vs. Watsco Stock Comparison

How do Parker-Hannifin (PH) 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

Parker-Hannifin (PH) and Watsco (WSO.B) both fall under the Capital Goods industry group, but PH is classified in Machinery while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Parker-Hannifin (PH) and Watsco (WSO.B)
Profile ItemPHWSO.B
NameParker-Hannifin CorporationWatsco 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 Capitalization115.73 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

PH
WSO.B
GSPC
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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Total Return (1Y)14.13%-11.21%
Total Return (3Y, Annualized)33.71%-3.05%
Total Return (5Y, Annualized)25.35%4.30%

Risk Profile

Drawdown History

PH
WSO.B
GSPC
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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Volatility (1Y, Annualized)27.33%40.28%
Beta (5Y)1.120.64
Max Drawdown (5Y)-28.64%-43.41%
Avg. Volume (3M)627.57K74

Risk-Adjusted Performance

Risk-Return Positioning

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PH 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 Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Sharpe Ratio (1Y)0.36-0.38
Sortino Ratio (1Y)0.53-0.57

Profitability

ROE (TTM)

Parker-Hannifin (PH) at 24.95% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for PH.

PH

Capital Goods industry group

24.95%

Max
40.55%
PH
24.95%
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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Parker-Hannifin (PH) at 16.62% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.

PH

Capital Goods industry group

16.62%

Max
27.47%
PH
16.62%
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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Parker-Hannifin (PH) at 21.90% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.

PH

Capital Goods industry group

21.90%

Max
36.60%
PH
21.90%
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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
ROE (TTM)24.95%16.21%
ROA (TTM)8.56%8.27%
Net Margin (TTM)16.62%6.31%
Operating Margin (TTM)21.90%10.14%
Gross Margin (TTM)37.70%27.18%

Growth

Revenue Growth

Parker-Hannifin (PH) at 8.31% 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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Parker-Hannifin (PH) at 5.01% 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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Revenue Growth (YoY)8.31%-4.98%
Revenue Growth (3Y CAGR)4.09%-0.16%
EPS Growth (YoY)5.01%-7.47%
EPS Growth (3Y CAGR)21.09%-6.89%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Parker-Hannifin (PH) at 0.94 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

PH

Capital Goods industry group

0.94

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
PH
0.94
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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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) at 1.09 runs a more typical debt-to-equity mix.

PH

Capital Goods industry group

1.09

Max
2.33
Q3
1.12
PH
1.09
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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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Current Ratio (MRQ)0.943.15
Debt / Equity (MRQ)1.090.16
Net Debt / EBITDA2.81-0.14

Dividends

Dividend Yield (TTM)

Parker-Hannifin (PH) at 0.85% 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.

PH

Capital Goods industry group

0.85%

Max
2.66%
Q3
1.14%
PH
0.85%
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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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) reports 26.11%, ranking against industry peers normally.

PH

Capital Goods industry group

26.11%

Max
67.39%
Q3
28.02%
PH
26.11%
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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
Dividend Yield (TTM)0.85%4.02%
Dividend Payout Ratio (TTM)26.11%109.66%

Valuation

P/E Ratio (TTM)

Both Parker-Hannifin (PH) at 31.53 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.

PH

Capital Goods industry group

31.53

Max
59.38
Q3
35.92
PH
31.53
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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Parker-Hannifin (PH) 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 is priced about in line with its industry on P/S ratio, while Parker-Hannifin (PH) at 5.16 sits in the pricier quartile — PH costs more per dollar of sales.

PH

Capital Goods industry group

5.16

Max
7.54
PH
5.16
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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Parker-Hannifin (PH) 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 Parker-Hannifin (PH) at 7.25 carries an above-peer premium to book — PH is pricier on assets.

PH

Capital Goods industry group

7.25

Max
9.66
PH
7.25
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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Parker-Hannifin (PH) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Parker-Hannifin (PH) and Watsco (WSO.B)
MetricPHWSO.B
P/E Ratio (TTM)31.5327.26
P/S Ratio (TTM)5.161.74
P/B Ratio (MRQ)7.253.99
Free Cash Flow Yield (TTM)2.45%3.50%