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AIT vs WSO
Which Stock Would AI Choose? Applied Industrial Technologies, Inc. (AIT) vs. Watsco, Inc. (WSO) Stock Comparison
Key Takeaways
- Both AIT and WSO operate in the industrial distribution sector, but AIT shows stronger recent quarterly revenue growth of 8.4% year-over-year (yoy), compared to WSO's -10% decline.
- WSO boasts a higher year-to-date (YTD) return at 32.87% versus AIT's 14.46%, though AIT leads over one year with 23.58%.
- AIT trades at a lower price-to-earnings (P/E) ratio of 27.94 compared to WSO's 35.97, suggesting relatively cheaper valuation.
- AIT exhibits lower volatility with a beta of 0.82, versus WSO's 1.05 (beta measures stock volatility relative to the market).
- Both stocks approach upcoming quarterly earnings reports, potentially driving near-term price behavior and investor sentiment.
- WSO offers a higher dividend yield of 3.00%, appealing to income-focused investors, while AIT prioritizes growth with higher return on equity (ROE, a profitability measure) at 22.02%.
Introduction
This stock comparison examines AIT and WSO, two leaders in industrial distribution, amid varying market dynamics. Investors tracking the industrials sector may find value in contrasting their business models, growth trajectories, and recent momentum. With both companies facing similar economic headwinds like supply chain pressures and interest rate sensitivity, yet delivering divergent performances, this analysis aids traders evaluating relative strength for short-term trades or long-term positions. Recent market activity highlights shifts in sentiment, making this head-to-head review timely for portfolio diversification in distribution stocks.
AIT Overview and Recent Performance
Applied Industrial Technologies, Inc. (AIT) is a leading distributor of bearings, power transmission components, fluid power systems, and linear motion products, serving manufacturing and maintenance sectors across North America. In recent market activity, AIT shares have traded near their 52-week high of $297.28, reflecting steady upward momentum with a market cap of approximately $10.94 billion. Positive quarterly revenue growth of 8.4% yoy and EPS growth of 2.2% have bolstered performance, alongside a YTD return of 14.46%. Sentiment has been supported by valuation discussions and anticipation of fiscal third-quarter earnings, with analysts noting the stock's multi-year rally and implied volatility surge in options trading. Lower beta indicates relative stability, influencing positive investor positioning in recent weeks.
WSO Overview and Recent Performance
Watsco, Inc. (WSO) stands as the largest independent distributor of heating, ventilation, air conditioning (HVAC), and refrigeration equipment in the U.S., with a focus on commercial and residential markets. Shares recently hovered around $440, with a market cap of $17.91 billion, amid a YTD gain of 32.87% but a modest one-year return of 0.28%. Recent quarters showed revenue contraction of -10% yoy and EPS decline of -25.9%, contributing to a sell-off viewed by some as overdone despite competitive pressures. A dividend increase to $3.30 quarterly has supported income appeal, while first-quarter earnings anticipation tempers sentiment. Higher beta reflects greater market sensitivity in recent trading.
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Head-to-Head Comparison
In business models, AIT diversifies across industrial components like bearings and fluid power, while WSO specializes in HVAC distribution, exposing it more to residential construction cycles. Growth drivers favor AIT with positive recent metrics versus WSO's contractions, though WSO's larger scale provides distribution advantages. Recent momentum shows WSO outperforming YTD but lagging annually, with AIT nearer its highs. Risk factors include WSO's higher debt-to-equity sensitivity (14.86% vs. 30.53%) no—wait, AIT higher debt/eq but lower beta—and competition in HVAC. Sector exposure aligns in industrials, but market sentiment tilts toward AIT's stability pre-earnings, balancing WSO's yield.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward AIT based on superior trend consistency in recent quarterly growth, lower P/E valuation, and reduced volatility via lower beta. While WSO excels in YTD momentum and dividend payout, its revenue headwinds present trade-offs. Observable catalysts like upcoming earnings could shift dynamics, positioning AIT with higher probability for relative outperformance in stable market conditions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AIT is a Buy and WSO is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AIT’s FA Score shows that 2 FA rating(s) are green whileWSO’s FA Score has 1 green FA rating(s).
- AIT’s FA Score: 2 green, 3 red.
- WSO’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AIT’s TA Score shows that 4 TA indicator(s) are bullish while WSO’s TA Score has 5 bullish TA indicator(s).
- AIT’s TA Score: 4 bullish, 4 bearish.
- WSO’s TA Score: 5 bullish, 5 bearish.
Price Growth
AIT (@Electronics Distributors) experienced а +1.53% price change this week, while WSO (@Electronics Distributors) price change was +2.44% for the same time period.
The average weekly price growth across all stocks in the @Electronics Distributors industry was +1.44%. For the same industry, the average monthly price growth was +4.16%, and the average quarterly price growth was +6.01%.
Reported Earning Dates
AIT is expected to report earnings on Aug 06, 2026.
WSO is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Electronics Distributors (+1.44% weekly)Electronics distributors are companies that are involved in distribution of one or more of the following: electronic components, computer products/ peripherals and software products & services. Several electronics distributors are also becoming the point of contact for technical/pre- & post-sale support in many cases, in an attempt to bolster their position in the market. Tariffs and/or cross-border trade barriers are some of the potential threats to the electronics supply chain, but that could also potentially lead to re-directing to markets where tariffs/restrictions are lower depending on demand. The industry is also vulnerable in the event of economic slowdowns. Arrow Electronics, Inc., SYNNEX Corporation and Versum Materials, Inc. are some of the major electronics distributors in the U.S.
| AIT | WSO | AIT / WSO | |
| Capitalization | 11.8B | 15.5B | 76% |
| EBITDA | 612M | 734M | 83% |
| Gain YTD | 25.098 | 14.721 | 170% |
| P/E Ratio | 30.26 | 31.21 | 97% |
| Revenue | 4.84B | 7.24B | 67% |
| Total Cash | 172M | 593M | 29% |
| Total Debt | 365M | 486M | 75% |
AIT | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 24 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 77 Overvalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 11 | 68 | |
SMR RATING 1..100 | 43 | 52 | |
PRICE GROWTH RATING 1..100 | 43 | 59 | |
P/E GROWTH RATING 1..100 | 28 | 60 | |
SEASONALITY SCORE 1..100 | 50 | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WSO's Valuation (14) in the Building Products industry is somewhat better than the same rating for AIT (77) in the Wholesale Distributors industry. This means that WSO’s stock grew somewhat faster than AIT’s over the last 12 months.
AIT's Profit vs Risk Rating (11) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (68) in the Building Products industry. This means that AIT’s stock grew somewhat faster than WSO’s over the last 12 months.
AIT's SMR Rating (43) in the Wholesale Distributors industry is in the same range as WSO (52) in the Building Products industry. This means that AIT’s stock grew similarly to WSO’s over the last 12 months.
AIT's Price Growth Rating (43) in the Wholesale Distributors industry is in the same range as WSO (59) in the Building Products industry. This means that AIT’s stock grew similarly to WSO’s over the last 12 months.
AIT's P/E Growth Rating (28) in the Wholesale Distributors industry is in the same range as WSO (60) in the Building Products industry. This means that AIT’s stock grew similarly to WSO’s over the last 12 months.
| AIT | WSO | |
|---|---|---|
| RSI ODDS (%) | 7 days ago 62% | 3 days ago 65% |
| Stochastic ODDS (%) | 3 days ago 54% | 3 days ago 59% |
| Momentum ODDS (%) | 3 days ago 69% | 3 days ago 62% |
| MACD ODDS (%) | 3 days ago 68% | 3 days ago 69% |
| TrendWeek ODDS (%) | 3 days ago 64% | 3 days ago 65% |
| TrendMonth ODDS (%) | 3 days ago 65% | 3 days ago 59% |
| Advances ODDS (%) | 3 days ago 64% | 7 days ago 70% |
| Declines ODDS (%) | 14 days ago 48% | 18 days ago 66% |
| BollingerBands ODDS (%) | 3 days ago 59% | 3 days ago 74% |
| Aroon ODDS (%) | 3 days ago 61% | 3 days ago 56% |
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AIT and
Correlation & Price change
A.I.dvisor indicates that over the last year, AIT has been loosely correlated with WCC. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if AIT jumps, then WCC could also see price increases.
WSO and
Correlation & Price change
A.I.dvisor indicates that over the last year, WSO has been loosely correlated with AIT. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if WSO jumps, then AIT could also see price increases.
| Ticker / NAME | Correlation To WSO | 1D Price Change % | ||
|---|---|---|---|---|
| WSO | 100% | -1.01% | ||
| AIT - WSO | 57% Loosely correlated | +0.38% | ||
| FERG - WSO | 54% Loosely correlated | +0.90% | ||
| POOL - WSO | 47% Loosely correlated | +1.38% | ||
| MSM - WSO | 46% Loosely correlated | +0.97% | ||
| BXC - WSO | 46% Loosely correlated | -0.86% | ||
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