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FERG vs WSO
Which Stock Would AI Choose? Ferguson Enterprises Inc. (FERG) vs. Watsco, Inc. (WSO) Stock Comparison
Key Takeaways
- WSO has outperformed FERG year-to-date (YTD, year-to-date) with a 29.23% gain compared to 19.62%.
- Both stocks operate in the industrial distribution sector, focusing on plumbing, HVAC, and related supplies, but FERG boasts a larger market capitalization of $53 billion versus WSO's $17.4 billion.
- WSO offers a higher dividend yield at around 3%, exceeding FERG's 1.35%.
- Recent catalysts include WSO's Q1 earnings beat and acquisition announcement, while FERG declared a dividend amid analyst price target adjustments.
- FERG's trailing P/E (price-to-earnings ratio) of 26 is lower than WSO's 35.45, suggesting relative valuation differences.
Introduction
Ferguson Enterprises Inc. (FERG) and Watsco, Inc. (WSO) are prominent players in the industrial distribution sector, specializing in plumbing, heating, ventilation, air conditioning (HVAC), and related infrastructure products. This stock comparison analyzes their recent market performance, financial metrics, and sector dynamics, offering insights for investors and traders evaluating opportunities in cyclical industrials amid varying economic conditions. Those seeking diversified exposure to construction and residential markets, or assessing relative strength in distribution channels, will find this head-to-head review particularly relevant in the current environment.
FERG Overview and Recent Performance
Ferguson Enterprises Inc. (FERG) is a leading distributor of plumbing supplies, pipe, valves, fittings (PVF), HVAC products, appliances, and water management solutions primarily across North America. Serving residential, commercial, and infrastructure sectors through an extensive network of branches and e-commerce, the company benefits from steady demand in construction and renovation activities. In recent market activity, FERG stock has traded around $264, reflecting a solid YTD gain of 19.62% within a 52-week range of $166 to $272. Influences include a recent dividend declaration, anticipation of first-quarter results, and analyst adjustments such as Wells Fargo lowering its price target, contributing to measured sentiment amid broader industrial trends.
WSO Overview and Recent Performance
Watsco, Inc. (WSO) distributes air conditioning, heating, refrigeration equipment, parts, and supplies to contractors and dealers in the U.S., Canada, and Latin America. With a focus on residential and light commercial replacement markets, it supports new construction and service needs through technology-enabled efficiency and a broad product portfolio. Recently, WSO shares have hovered near $429, delivering a stronger YTD return of 29.23% in a 52-week band of $323 to $496. Positive sentiment stems from a first-quarter earnings beat, announcements of stabilizing markets, improved operating efficiency, e-commerce growth, and an acquisition of Jackson Supply Company, bolstering its competitive positioning.
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Head-to-Head Comparison
Both FERG and WSO thrive as distributors in the industrials sector, but FERG emphasizes broader plumbing and PVF alongside HVAC, while WSO specializes in HVAC/R with international reach. Growth drivers differ: WSO leverages acquisitions and e-commerce for expansion, contrasting FERG's scale via organic distribution. Recent momentum favors WSO with superior YTD gains and earnings surprises, versus FERG's steady but tempered trajectory. Risk profiles show FERG's higher beta (1.18) indicating greater volatility than WSO's 1.05, while FERG offers lower P/E valuation and higher EBITDA ($3B vs. $736M). Market sentiment tilts toward WSO on catalysts, though FERG's size provides stability trade-offs.
Tickeron AI Verdict
Tickeron’s AI models would likely favor WSO in the current environment, given its stronger YTD momentum, recent earnings outperformance, strategic acquisition, and stabilizing sector signals. These factors suggest higher probability of near-term upside relative to FERG, though FERG remains attractive for value-oriented stability.
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 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 FERG is a StrongBuy 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).
FERG’s FA Score shows that 3 FA rating(s) are green whileWSO’s FA Score has 1 green FA rating(s).
- FERG’s FA Score: 3 green, 2 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.
FERG’s TA Score shows that 4 TA indicator(s) are bullish while WSO’s TA Score has 5 bullish TA indicator(s).
- FERG’s TA Score: 4 bullish, 6 bearish.
- WSO’s TA Score: 5 bullish, 5 bearish.
Price Growth
FERG (@Electronics Distributors) experienced а +0.22% 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
FERG is expected to report earnings on Aug 10, 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.
| FERG | WSO | FERG / WSO | |
| Capitalization | 44.6B | 15.5B | 288% |
| EBITDA | 3.08B | 734M | 419% |
| Gain YTD | 4.549 | 14.721 | 31% |
| P/E Ratio | 22.65 | 31.21 | 73% |
| Revenue | 31.2B | 7.24B | 431% |
| Total Cash | 820M | 593M | 138% |
| Total Debt | 6.08B | 486M | 1,252% |
FERG | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 65 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 32 Undervalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 31 | 68 | |
SMR RATING 1..100 | 30 | 52 | |
PRICE GROWTH RATING 1..100 | 52 | 59 | |
P/E GROWTH RATING 1..100 | 68 | 60 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
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 in the same range as FERG (32) in the null industry. This means that WSO’s stock grew similarly to FERG’s over the last 12 months.
FERG's Profit vs Risk Rating (31) in the null industry is somewhat better than the same rating for WSO (68) in the Building Products industry. This means that FERG’s stock grew somewhat faster than WSO’s over the last 12 months.
FERG's SMR Rating (30) in the null industry is in the same range as WSO (52) in the Building Products industry. This means that FERG’s stock grew similarly to WSO’s over the last 12 months.
FERG's Price Growth Rating (52) in the null industry is in the same range as WSO (59) in the Building Products industry. This means that FERG’s stock grew similarly to WSO’s over the last 12 months.
WSO's P/E Growth Rating (60) in the Building Products industry is in the same range as FERG (68) in the null industry. This means that WSO’s stock grew similarly to FERG’s over the last 12 months.
| FERG | WSO | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 70% | 3 days ago 65% |
| Stochastic ODDS (%) | 3 days ago 58% | 3 days ago 59% |
| Momentum ODDS (%) | 3 days ago 70% | 3 days ago 62% |
| MACD ODDS (%) | 3 days ago 64% | 3 days ago 69% |
| TrendWeek ODDS (%) | 3 days ago 65% | 3 days ago 65% |
| TrendMonth ODDS (%) | 3 days ago 59% | 3 days ago 59% |
| Advances ODDS (%) | 3 days ago 67% | 7 days ago 70% |
| Declines ODDS (%) | 7 days ago 54% | 18 days ago 66% |
| BollingerBands ODDS (%) | 3 days ago 58% | 3 days ago 74% |
| Aroon ODDS (%) | 3 days ago 57% | 3 days ago 56% |
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FERG and
Correlation & Price change
A.I.dvisor indicates that over the last year, FERG has been loosely correlated with AIT. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if FERG jumps, then AIT could also see price increases.
| Ticker / NAME | Correlation To FERG | 1D Price Change % | ||
|---|---|---|---|---|
| FERG | 100% | +0.90% | ||
| AIT - FERG | 54% Loosely correlated | +0.38% | ||
| WCC - FERG | 53% Loosely correlated | +0.89% | ||
| WSO - FERG | 50% Loosely correlated | -1.01% | ||
| CNM - FERG | 48% Loosely correlated | -3.46% | ||
| SITE - FERG | 47% Loosely correlated | -0.36% | ||
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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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