Lavoro (NASDAQ:LVRO – Get Free Report) and Watsco (NYSE:WSO – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Earnings and Valuation
This table compares Lavoro and Watsco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lavoro | $6.52 billion | 0.01 | -$466.28 million | ($1.57) | -0.19 |
| Watsco | $7.24 billion | 1.76 | $496.99 million | $11.53 | 27.12 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Lavoro and Watsco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lavoro | 1 | 0 | 0 | 0 | 1.00 |
| Watsco | 0 | 9 | 2 | 0 | 2.18 |
Watsco has a consensus target price of $395.50, indicating a potential upside of 26.50%. Given Watsco’s stronger consensus rating and higher possible upside, analysts plainly believe Watsco is more favorable than Lavoro.
Profitability
This table compares Lavoro and Watsco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lavoro | N/A | N/A | N/A |
| Watsco | 6.53% | 14.40% | 10.17% |
Institutional & Insider Ownership
2.5% of Lavoro shares are owned by institutional investors. Comparatively, 89.7% of Watsco shares are owned by institutional investors. 12.9% of Watsco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Lavoro has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Watsco has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Summary
Watsco beats Lavoro on 14 of the 14 factors compared between the two stocks.
About Lavoro
Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in São Paulo, Brazil.
About Watsco
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
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