Contrasting Watsco (NYSE:WSO) & Waxman Industries (OTCMKTS:WXMN)

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Watsco (NYSE:WSO) and Waxman Industries (OTCMKTS:WXMN) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for Watsco and Waxman Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watsco 2 5 1 0 1.88
Waxman Industries 0 0 0 0 N/A

Watsco currently has a consensus price target of $184.40, indicating a potential upside of ∞. Given Watsco’s higher probable upside, equities research analysts plainly believe Watsco is more favorable than Waxman Industries.

Risk & Volatility

Watsco has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Waxman Industries has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

81.5% of Watsco shares are owned by institutional investors. 13.6% of Watsco shares are owned by company insiders. Comparatively, 67.9% of Waxman Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Watsco and Waxman Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Watsco 4.77% 13.38% 8.80%
Waxman Industries N/A N/A N/A

Valuation & Earnings

This table compares Watsco and Waxman Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Watsco $4.77 billion 0.00 $245.95 million $6.50 N/A
Waxman Industries N/A N/A N/A N/A N/A

Watsco has higher revenue and earnings than Waxman Industries.

Summary

Watsco beats Waxman Industries on 7 of the 9 factors compared between the two stocks.

Watsco Company Profile

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.

Waxman Industries Company Profile

Waxman Industries, Inc. designs, develops, and distributes surface protection and floor care products, and other home improvement and hardware products. The company's floor care and surface protection products include furniture sliders, felt pads, furniture tips and glides, bumpers, gripper pads, caster and cups, and door stops; shower heads and accessories; and plumping products comprise sink and faucet repair products, water leak detection products, toilet repair products, plungers, drain cleaning and repair products, water supply repair products, and hose and pipe repair products. It also offers bathroom and kitchen faucets; and home organization and storage solutions. The company sells its products under the Kleen Freak, SoftTouch, PlumCraft, Super Sliders, leakSMART, BodyMoods, and SimplyClean brand names. Waxman Industries, Inc. was incorporated in 1989 and is based in Bedford Heights, Ohio.

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