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GWW vs WSO
Which Stock Would AI Choose? W.W. Grainger (GWW) vs. Watsco (WSO) Stock Comparison
Key Takeaways
- GWW, a leading distributor of maintenance, repair, and operating (MRO) products, shows steady year-to-date (YTD) gains of about 14%, bolstered by a recent 10% dividend increase.
- WSO, focused on heating, ventilation, air conditioning, and refrigeration (HVAC/R) distribution, has outperformed with YTD returns near 29%, driven by strong Q1 results and an acquisition announcement.
- Both stocks trade at elevated price-to-earnings (P/E) ratios above 32, reflecting premium valuations in the industrial distribution sector.
- GWW boasts a larger market cap of over $54 billion compared to WSO's $17 billion, indicating greater scale but potentially slower growth.
- Recent market activity highlights WSO's momentum from earnings beats, while GWW approaches its upcoming quarterly report with positive analyst expectations.
- Investor sentiment favors stability in GWW amid broader industrial trends, contrasted by WSO's growth catalysts in stabilizing HVAC demand.
Introduction
In the industrial distribution sector, GWW and WSO stand out as key players serving distinct yet overlapping markets. GWW provides broad MRO solutions to businesses, while WSO specializes in HVAC/R equipment. This comparison analyzes their recent performance, business drivers, and market positioning, aiding traders seeking momentum plays and long-term investors evaluating relative stability. With both stocks navigating economic shifts and sector tailwinds, understanding their contrasts helps inform portfolio decisions in today's environment.
GWW Overview and Recent Performance
GWW (W.W. Grainger, Inc.) is a premier business-to-business distributor offering MRO products, safety supplies, and tools to over 4.5 million customers across North America. In recent market activity, the stock has maintained resilience, posting YTD gains around 14% amid broader industrial steadiness. Trading near $1,149 with a market cap exceeding $54 billion, it reflects a trailing P/E of 32.5. Sentiment has been supported by a 10% quarterly dividend hike to $2.49 per share and CEO emphasis on 2025 growth strategies, including AI integration. Upcoming Q1 earnings, expected May 7, anticipate EPS of $10.20 and revenue of $4.57 billion, with analysts citing consistent demand and operational efficiency as key influences.
WSO Overview and Recent Performance
WSO (Watsco, Inc.) leads in HVAC/R distribution, serving contractors through a network of over 690 locations. Recent weeks have shown robust YTD performance of approximately 29%, though with some pullback, trading around $429 and a $17 billion market cap. Its trailing P/E stands at 35.5. Q1 results surpassed estimates, highlighting stabilizing markets, improved efficiency, and e-commerce growth, alongside the announcement to acquire Jackson Supply Company for expansion. These developments have driven positive sentiment, with a high dividend yield of 3.1% reinforcing appeal amid sector recovery and technology adoption.
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Head-to-Head Comparison
Both GWW and WSO operate as distributors but differ in focus: GWW's broad MRO portfolio offers diversification across industries, while WSO's HVAC/R niche ties it to residential and commercial construction cycles. Growth drivers contrast with WSO's superior YTD momentum from acquisitions and sales beats versus GWW's steady revenue growth around 4.5% quarterly. Recent momentum favors WSO, but GWW exhibits lower volatility with similar betas near 1.05. Risk factors include WSO's cyclical exposure and GWW's higher debt-to-equity at 69%. Market sentiment leans toward WSO for upside potential, balanced by GWW's scale and dividend reliability.
Tickeron AI Verdict
Tickeron's AI models currently lean toward WSO due to its stronger YTD relative performance, recent earnings catalysts, and acquisition-driven growth positioning. Factors like higher returns on equity (18.6%) and stabilizing sector demand provide probabilistic edge over GWW's stability. However, GWW could shift favor post-earnings if results affirm trends. Monitor both for evolving signals.
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 GWW 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).
GWW’s FA Score shows that 4 FA rating(s) are green whileWSO’s FA Score has 1 green FA rating(s).
- GWW’s FA Score: 4 green, 1 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.
GWW’s TA Score shows that 4 TA indicator(s) are bullish while WSO’s TA Score has 5 bullish TA indicator(s).
- GWW’s TA Score: 4 bullish, 4 bearish.
- WSO’s TA Score: 5 bullish, 5 bearish.
Price Growth
GWW (@Electronics Distributors) experienced а +1.22% 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
GWW is expected to report earnings on Aug 04, 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.
| GWW | WSO | GWW / WSO | |
| Capitalization | 62.1B | 15.5B | 401% |
| EBITDA | 2.88B | 734M | 393% |
| Gain YTD | 30.918 | 14.721 | 210% |
| P/E Ratio | 35.38 | 31.21 | 113% |
| Revenue | 18.4B | 7.24B | 254% |
| Total Cash | 695M | 593M | 117% |
| Total Debt | 2.78B | 486M | 572% |
GWW | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 12 | 68 | |
SMR RATING 1..100 | 20 | 52 | |
PRICE GROWTH RATING 1..100 | 19 | 59 | |
P/E GROWTH RATING 1..100 | 30 | 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 significantly better than the same rating for GWW (88) in the Wholesale Distributors industry. This means that WSO’s stock grew significantly faster than GWW’s over the last 12 months.
GWW's Profit vs Risk Rating (12) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (68) in the Building Products industry. This means that GWW’s stock grew somewhat faster than WSO’s over the last 12 months.
GWW's SMR Rating (20) in the Wholesale Distributors industry is in the same range as WSO (52) in the Building Products industry. This means that GWW’s stock grew similarly to WSO’s over the last 12 months.
GWW's Price Growth Rating (19) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (59) in the Building Products industry. This means that GWW’s stock grew somewhat faster than WSO’s over the last 12 months.
GWW's P/E Growth Rating (30) in the Wholesale Distributors industry is in the same range as WSO (60) in the Building Products industry. This means that GWW’s stock grew similarly to WSO’s over the last 12 months.
| GWW | WSO | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 38% | 2 days ago 65% |
| Stochastic ODDS (%) | 2 days ago 46% | 2 days ago 59% |
| Momentum ODDS (%) | 2 days ago 66% | 2 days ago 62% |
| MACD ODDS (%) | 2 days ago 63% | 2 days ago 69% |
| TrendWeek ODDS (%) | 2 days ago 61% | 2 days ago 65% |
| TrendMonth ODDS (%) | 2 days ago 60% | 2 days ago 59% |
| Advances ODDS (%) | 6 days ago 60% | 6 days ago 70% |
| Declines ODDS (%) | 3 days ago 49% | 17 days ago 66% |
| BollingerBands ODDS (%) | 2 days ago 48% | 2 days ago 74% |
| Aroon ODDS (%) | 2 days ago 45% | 2 days ago 56% |
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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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