TXT vs. WSO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TXT and WSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TXT | WSO |
|---|---|---|
| Company Name | Textron Inc. | Watsco, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Trading Companies & Distributors |
| Market Capitalization | 15.56 billion USD | 16.76 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | June 7, 1984 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TXT and WSO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | TXT | WSO |
|---|---|---|
| 5-Day Price Return | 3.37% | 1.41% |
| 13-Week Price Return | 7.34% | -10.48% |
| 26-Week Price Return | 21.04% | -19.87% |
| 52-Week Price Return | 1.43% | -15.31% |
| Month-to-Date Return | 3.37% | 1.41% |
| Year-to-Date Return | 14.18% | -13.48% |
| 10-Day Avg. Volume | 1.35M | 0.53M |
| 3-Month Avg. Volume | 1.50M | 0.38M |
| 3-Month Volatility | 23.82% | 27.98% |
| Beta | 1.03 | 1.02 |
Profitability
Return on Equity (TTM)
TXT
11.31%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
TXT’s Return on Equity of 11.31% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
WSO
19.73%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.66%
- Median
- 13.72%
- Q1
- 9.74%
- Min
- -0.34%
In the upper quartile for the Trading Companies & Distributors industry, WSO’s Return on Equity of 19.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
TXT
5.80%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
TXT’s Net Profit Margin of 5.80% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
WSO
7.08%
Trading Companies & Distributors Industry
- Max
- 16.11%
- Q3
- 9.48%
- Median
- 5.89%
- Q1
- 3.68%
- Min
- -1.09%
WSO’s Net Profit Margin of 7.08% is aligned with the median group of its peers in the Trading Companies & Distributors industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
TXT
5.50%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
TXT’s Operating Profit Margin of 5.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
WSO
10.26%
Trading Companies & Distributors Industry
- Max
- 26.26%
- Q3
- 14.59%
- Median
- 7.05%
- Q1
- 4.94%
- Min
- -8.06%
WSO’s Operating Profit Margin of 10.26% is around the midpoint for the Trading Companies & Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | TXT | WSO |
|---|---|---|
| Return on Equity (TTM) | 11.31% | 19.73% |
| Return on Assets (TTM) | 4.85% | 11.69% |
| Net Profit Margin (TTM) | 5.80% | 7.08% |
| Operating Profit Margin (TTM) | 5.50% | 10.26% |
| Gross Profit Margin (TTM) | 19.73% | 27.54% |
Financial Strength
Current Ratio (MRQ)
TXT
1.70
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
TXT’s Current Ratio of 1.70 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
WSO
3.08
Trading Companies & Distributors Industry
- Max
- 3.32
- Q3
- 2.27
- Median
- 1.60
- Q1
- 1.41
- Min
- 0.26
WSO’s Current Ratio of 3.08 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
TXT
0.50
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
WSO
0.01
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.24
- Median
- 0.79
- Q1
- 0.61
- Min
- 0.01
Falling into the lower quartile for the Trading Companies & Distributors industry, WSO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
TXT
10.72
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
WSO
140.00
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.67
- Q1
- 2.04
- Min
- -1.67
With an Interest Coverage Ratio of 140.00, WSO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | TXT | WSO |
|---|---|---|
| Current Ratio (MRQ) | 1.70 | 3.08 |
| Quick Ratio (MRQ) | 0.71 | 1.26 |
| Debt-to-Equity Ratio (MRQ) | 0.50 | 0.01 |
| Interest Coverage Ratio (TTM) | 10.72 | 140.00 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TXT
0.07%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
TXT’s Dividend Yield of 0.07% is in the lower quartile for the Aerospace & Defense industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
WSO
2.64%
Trading Companies & Distributors Industry
- Max
- 5.25%
- Q3
- 2.95%
- Median
- 2.06%
- Q1
- 1.11%
- Min
- 0.00%
WSO’s Dividend Yield of 2.64% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
TXT
1.85%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
TXT’s Dividend Payout Ratio of 1.85% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
WSO
84.37%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 71.34%
- Median
- 47.49%
- Q1
- 22.56%
- Min
- 0.00%
WSO’s Dividend Payout Ratio of 84.37% is in the upper quartile for the Trading Companies & Distributors industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | TXT | WSO |
|---|---|---|
| Dividend Yield (TTM) | 0.07% | 2.64% |
| Dividend Payout Ratio (TTM) | 1.85% | 84.37% |
Valuation
Price-to-Earnings Ratio (TTM)
TXT
19.16
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 19.16 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
WSO
31.90
Trading Companies & Distributors Industry
- Max
- 42.69
- Q3
- 25.21
- Median
- 16.99
- Q1
- 13.13
- Min
- 5.35
A P/E Ratio of 31.90 places WSO in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
TXT
1.11
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.11 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
WSO
2.26
Trading Companies & Distributors Industry
- Max
- 4.90
- Q3
- 2.71
- Median
- 1.06
- Q1
- 0.70
- Min
- 0.30
WSO’s P/S Ratio of 2.26 aligns with the market consensus for the Trading Companies & Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
TXT
1.95
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
TXT’s P/B Ratio of 1.95 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
WSO
6.47
Trading Companies & Distributors Industry
- Max
- 7.55
- Q3
- 4.63
- Median
- 2.09
- Q1
- 1.30
- Min
- 0.31
WSO’s P/B Ratio of 6.47 is in the upper tier for the Trading Companies & Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | TXT | WSO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 19.16 | 31.90 |
| Price-to-Sales Ratio (TTM) | 1.11 | 2.26 |
| Price-to-Book Ratio (MRQ) | 1.95 | 6.47 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.16 | 22.82 |