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TXT vs. WSO.B: Textron vs. Watsco Stock Comparison

How do Textron (TXT) 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

Textron (TXT) and Watsco (WSO.B) both fall under the Capital Goods industry group, but TXT is classified in Aerospace & Defense while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Textron (TXT) and Watsco (WSO.B)
Profile ItemTXTWSO.B
NameTextron 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 Capitalization14.15 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

TXT
WSO.B
GSPC
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Textron (TXT) 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 Textron (TXT) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Total Return (1Y)3.94%-11.21%
Total Return (3Y, Annualized)4.49%-3.05%
Total Return (5Y, Annualized)2.30%4.30%

Risk Profile

Drawdown History

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

Risk Metrics

Textron (TXT) trades around 1.72M 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 Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Volatility (1Y, Annualized)29.18%40.28%
Beta (5Y)0.870.64
Max Drawdown (5Y)-37.33%-43.41%
Avg. Volume (3M)1.72M74

Risk-Adjusted Performance

Risk-Return Positioning

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TXT 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 Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Sharpe Ratio (1Y)-0.01-0.38
Sortino Ratio (1Y)-0.02-0.57

Profitability

ROE (TTM)

Both Textron (TXT) at 12.48% and Watsco (WSO.B) at 16.21% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

TXT

Capital Goods industry group

12.48%

Max
40.55%
Q3
19.29%
TXT
12.48%
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Textron (TXT) at 6.30% 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.

TXT

Capital Goods industry group

6.30%

Max
27.47%
Q3
12.10%
TXT
6.30%
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Textron (TXT) at 9.33% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

TXT

Capital Goods industry group

9.33%

Max
36.60%
Q3
18.33%
Median
11.12%
TXT
9.33%
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
ROE (TTM)12.48%16.21%
ROA (TTM)4.51%8.27%
Net Margin (TTM)6.30%6.31%
Operating Margin (TTM)9.33%10.14%
Gross Margin (TTM)17.53%27.18%

Growth

Revenue Growth

Textron (TXT) at 8.01% 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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Textron (TXT) at 18.02% 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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Revenue Growth (YoY)8.01%-4.98%
Revenue Growth (3Y CAGR)4.77%-0.16%
EPS Growth (YoY)18.02%-7.47%
EPS Growth (3Y CAGR)8.42%-6.89%

Financial Strength

Current Ratio (MRQ)

Textron (TXT) at 1.80 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.

TXT

Capital Goods industry group

1.80

Max
5.22
Q3
2.95
Median
2.08
TXT
1.80
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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Textron (TXT) 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 Textron (TXT) at 0.52 runs a more typical debt-to-equity mix.

TXT

Capital Goods industry group

0.52

Max
2.33
Q3
1.12
Median
0.60
TXT
0.52
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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Textron (TXT) 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 Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Current Ratio (MRQ)1.803.15
Debt / Equity (MRQ)0.520.16
Net Debt / EBITDA1.54-0.14

Dividends

Dividend Yield (TTM)

Textron (TXT) at 0.09% 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.

TXT

Capital Goods industry group

0.09%

Max
2.66%
Q3
1.14%
Median
0.24%
TXT
0.09%
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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Textron (TXT) 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 Textron (TXT) reports 1.44%, ranking against industry peers normally.

TXT

Capital Goods industry group

1.44%

Max
67.39%
Q3
28.02%
Median
6.86%
TXT
1.44%
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
Dividend Yield (TTM)0.09%4.02%
Dividend Payout Ratio (TTM)1.44%109.66%

Valuation

P/E Ratio (TTM)

Textron (TXT) at 15.03 sits in the cheaper P/E ratio quartile, while Watsco (WSO.B) at 27.26 is closer to its industry’s usual earnings multiple — a discount for TXT, though growth and earnings durability still matter.

TXT

Capital Goods industry group

15.03

Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
TXT
15.03
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Textron (TXT) at 0.92 sits in the cheaper P/S ratio quartile while Watsco (WSO.B) at 1.74 prices around its industry’s middle — TXT costs less per dollar of sales, though read it alongside growth and margins.

TXT

Capital Goods industry group

0.92

Max
7.54
Q3
3.76
Median
2.15
Q1
1.03
TXT
0.92
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Textron (TXT) at 1.74 sits in the lower P/B ratio quartile against book while Watsco (WSO.B) at 3.99 is valued near its industry’s middle — TXT is cheaper on assets, though weigh it against ROE and asset quality.

TXT

Capital Goods industry group

1.74

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
TXT
1.74
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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Textron (TXT) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Textron (TXT) and Watsco (WSO.B)
MetricTXTWSO.B
P/E Ratio (TTM)15.0327.26
P/S Ratio (TTM)0.921.74
P/B Ratio (MRQ)1.743.99
Free Cash Flow Yield (TTM)5.35%3.50%