Insider and Institutional Ownership
0.1% of Watsco shares are owned by institutional investors. Comparatively, 50.8% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 13.8% of Watsco shares are owned by insiders. Comparatively, 16.7% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dividends
Watsco pays an annual dividend of $13.20 per share and has a dividend yield of 4.2%. Watsco pays out 114.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.5% of their earnings in the form of a dividend.
Profitability
This table compares Watsco and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Watsco | 6.53% | 14.40% | 10.17% |
| Watsco Competitors | 2.82% | -34.23% | 3.61% |
Volatility & Risk
Earnings and Valuation
This table compares Watsco and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Watsco | $7.24 billion | $496.99 million | 27.54 |
| Watsco Competitors | $6.39 billion | $355.21 million | 24.21 |
Watsco has higher revenue and earnings than its rivals. Watsco is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Summary
Watsco beats its rivals on 7 of the 11 factors compared.
About Watsco
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.
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