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RRX vs. WSO.B: Regal Rexnord vs. Watsco Stock Comparison

How do Regal Rexnord (RRX) 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

Regal Rexnord (RRX) and Watsco (WSO.B) both fall under the Capital Goods industry group, but RRX is classified in Electrical Equipment while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Regal Rexnord (RRX) and Watsco (WSO.B)
Profile ItemRRXWSO.B
NameRegal Rexnord CorporationWatsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryElectrical EquipmentTrading Companies & Distributors
GICS Sub-IndustryElectrical Components & EquipmentTrading Companies & Distributors
Market Capitalization11.26 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

RRX
WSO.B
GSPC
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Regal Rexnord (RRX) 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 Regal Rexnord (RRX) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Total Return (1Y)33.67%-11.21%
Total Return (3Y, Annualized)20.16%-3.05%
Total Return (5Y, Annualized)2.72%4.30%

Risk Profile

Drawdown History

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

Risk Metrics

Regal Rexnord (RRX) trades around 1.21M 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 Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Volatility (1Y, Annualized)53.85%40.28%
Beta (5Y)1.040.64
Max Drawdown (5Y)-48.11%-43.41%
Avg. Volume (3M)1.21M74

Risk-Adjusted Performance

Risk-Return Positioning

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RRX 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 Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Sharpe Ratio (1Y)0.55-0.38
Sortino Ratio (1Y)0.79-0.57

Profitability

ROE (TTM)

Watsco (WSO.B) at 16.21% is around its peer norm for ROE, while Regal Rexnord (RRX) at 3.41% drops into the bottom quartile, signaling weaker returns on shareholders’ equity.

RRX

Capital Goods industry group

3.41%

Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
RRX
3.41%
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Regal Rexnord (RRX) at 3.77% and Watsco (WSO.B) at 6.31% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

RRX

Capital Goods industry group

3.77%

Max
27.47%
Q3
12.10%
Median
6.30%
RRX
3.77%
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Regal Rexnord (RRX) at 12.10% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

RRX

Capital Goods industry group

12.10%

Max
36.60%
Q3
18.33%
RRX
12.10%
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
ROE (TTM)3.41%16.21%
ROA (TTM)3.20%8.27%
Net Margin (TTM)3.77%6.31%
Operating Margin (TTM)12.10%10.14%
Gross Margin (TTM)37.24%27.18%

Growth

Revenue Growth

Both Regal Rexnord (RRX) at -1.65% and Watsco (WSO.B) at -4.98% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Regal Rexnord (RRX) at 42.86% 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 RRX.

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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Revenue Growth (YoY)-1.65%-4.98%
Revenue Growth (3Y CAGR)4.38%-0.16%
EPS Growth (YoY)42.86%-7.47%
EPS Growth (3Y CAGR)-16.79%-6.89%

Financial Strength

Current Ratio (MRQ)

Regal Rexnord (RRX) at 2.22 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.

RRX

Capital Goods industry group

2.22

Max
5.22
Q3
2.95
RRX
2.22
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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Regal Rexnord (RRX) 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 Regal Rexnord (RRX) at 0.67 runs a more typical debt-to-equity mix.

RRX

Capital Goods industry group

0.67

Max
2.33
Q3
1.12
RRX
0.67
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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Regal Rexnord (RRX) 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 Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Current Ratio (MRQ)2.223.15
Debt / Equity (MRQ)0.670.16
Net Debt / EBITDA3.47-0.14

Dividends

Dividend Yield (TTM)

Regal Rexnord (RRX) at 0.87% 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.

RRX

Capital Goods industry group

0.87%

Max
2.66%
Q3
1.14%
RRX
0.87%
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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Regal Rexnord (RRX) 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 Regal Rexnord (RRX) reports 40.35%, ranking against industry peers normally.

RRX

Capital Goods industry group

40.35%

Max
67.39%
RRX
40.35%
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
Dividend Yield (TTM)0.87%4.02%
Dividend Payout Ratio (TTM)40.35%109.66%

Valuation

P/E Ratio (TTM)

Watsco (WSO.B) at 27.26 is near its industry’s usual P/E ratio, while Regal Rexnord (RRX) at 48.72 sits in the richer quartile — RRX needs stronger growth or earnings quality to justify the premium.

RRX

Capital Goods industry group

48.72

Max
59.38
RRX
48.72
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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Regal Rexnord (RRX) 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 Regal Rexnord (RRX) at 1.83 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

RRX

Capital Goods industry group

1.83

Max
7.54
Q3
3.76
Median
2.15
RRX
1.83
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Regal Rexnord (RRX) at 1.64 sits in the lower P/B ratio quartile against book while Watsco (WSO.B) at 3.99 is valued near its industry’s middle — RRX is cheaper on assets, though weigh it against ROE and asset quality.

RRX

Capital Goods industry group

1.64

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
RRX
1.64
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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Regal Rexnord (RRX) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Regal Rexnord (RRX) and Watsco (WSO.B)
MetricRRXWSO.B
P/E Ratio (TTM)48.7227.26
P/S Ratio (TTM)1.831.74
P/B Ratio (MRQ)1.643.99
Free Cash Flow Yield (TTM)3.88%3.50%