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WSO.B vs. XYL: Watsco vs. Xylem Stock Comparison

How do Watsco (WSO.B) and Xylem (XYL) 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

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

Company profile comparison for Watsco (WSO.B) and Xylem (XYL)
Profile ItemWSO.BXYL
NameWatsco Inc. Class B Common StockXylem Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryTrading Companies & DistributorsMachinery
GICS Sub-IndustryTrading Companies & DistributorsIndustrial Machinery & Supplies & Components
Market Capitalization12.92 billion USD22.44 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980October 13, 2011
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

WSO.B
XYL
GSPC
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Watsco (WSO.B) vs. Xylem (XYL), 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 Watsco (WSO.B) and Xylem (XYL). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Total Return (1Y)-11.21%-33.10%
Total Return (3Y, Annualized)-3.05%2.29%
Total Return (5Y, Annualized)4.30%-4.47%

Risk Profile

Drawdown History

WSO.B
XYL
GSPC
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Watsco (WSO.B) vs. Xylem (XYL), 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 Watsco (WSO.B) and Xylem (XYL). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Xylem (XYL) trades around 2.60M 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 Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Volatility (1Y, Annualized)40.28%30.74%
Beta (5Y)0.640.96
Max Drawdown (5Y)-43.41%-44.89%
Avg. Volume (3M)742.60M

Risk-Adjusted Performance

Risk-Return Positioning

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WSO.B and XYL 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 Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Sharpe Ratio (1Y)-0.38-1.22
Sortino Ratio (1Y)-0.57-1.48

Profitability

ROE (TTM)

Both Watsco (WSO.B) at 16.21% and Xylem (XYL) at 9.76% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

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%

XYL

Capital Goods industry group

9.76%

Max
40.55%
Q3
19.29%
Median
12.12%
XYL
9.76%
Q1
4.08%
Min
-17.12%
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Watsco (WSO.B) at 6.31% and Xylem (XYL) at 11.94% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

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%

XYL

Capital Goods industry group

11.94%

Max
27.47%
Q3
12.10%
XYL
11.94%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Watsco (WSO.B) at 10.14% and Xylem (XYL) at 15.95% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

XYL

Capital Goods industry group

15.95%

Max
36.60%
Q3
18.33%
XYL
15.95%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
ROE (TTM)16.21%9.76%
ROA (TTM)8.27%5.07%
Net Margin (TTM)6.31%11.94%
Operating Margin (TTM)10.14%15.95%
Gross Margin (TTM)27.18%39.32%

Growth

Revenue Growth

Xylem (XYL) at 5.52% 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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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Watsco (WSO.B) at -7.47% and Xylem (XYL) at 7.40% 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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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Revenue Growth (YoY)-4.98%5.52%
Revenue Growth (3Y CAGR)-0.16%17.84%
EPS Growth (YoY)-7.47%7.40%
EPS Growth (3Y CAGR)-6.89%25.99%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Xylem (XYL) at 1.39 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

XYL

Capital Goods industry group

1.39

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
XYL
1.39
Min
0.36
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Watsco (WSO.B) vs. Xylem (XYL): 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 Xylem (XYL) at 0.29 runs a more typical debt-to-equity mix.

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

XYL

Capital Goods industry group

0.29

Max
2.33
Q3
1.12
Median
0.60
XYL
0.29
Q1
0.29
Min
0.00
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Current Ratio (MRQ)3.151.39
Debt / Equity (MRQ)0.160.29
Net Debt / EBITDA-0.141.18

Dividends

Dividend Yield (TTM)

Xylem (XYL) at 1.69% 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.

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%

XYL

Capital Goods industry group

1.69%

Max
2.66%
XYL
1.69%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Watsco (WSO.B) vs. Xylem (XYL): 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 Xylem (XYL) reports 37.47%, ranking against industry peers normally.

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%

XYL

Capital Goods industry group

37.47%

Max
67.39%
XYL
37.47%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
Dividend Yield (TTM)4.02%1.69%
Dividend Payout Ratio (TTM)109.66%37.47%

Valuation

P/E Ratio (TTM)

Both Watsco (WSO.B) at 27.26 and Xylem (XYL) at 21.69 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

XYL

Capital Goods industry group

21.69

Max
59.38
Q3
35.92
Median
25.41
XYL
21.69
Q1
19.47
Min
3.03
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Watsco (WSO.B) at 1.74 and Xylem (XYL) at 2.48 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

XYL

Capital Goods industry group

2.48

Max
7.54
Q3
3.76
XYL
2.48
Median
2.15
Q1
1.03
Min
0.03
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Watsco (WSO.B) at 3.99 and Xylem (XYL) at 2.19 are valued close to their industries’ norm against book — neither stands out from peers.

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

XYL

Capital Goods industry group

2.19

Max
9.66
Q3
5.00
Median
3.12
XYL
2.19
Q1
1.81
Min
-1.08
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Watsco (WSO.B) vs. Xylem (XYL): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Watsco (WSO.B) and Xylem (XYL)
MetricWSO.BXYL
P/E Ratio (TTM)27.2621.69
P/S Ratio (TTM)1.742.48
P/B Ratio (MRQ)3.992.19
Free Cash Flow Yield (TTM)3.50%5.39%