DXP Enterprises Inc (DXPE)vsWatsco Inc (WSO)
DXPE
DXP Enterprises Inc
$139.69
-0.58%
INDUSTRIALS · Cap: $2.02B
WSO
Watsco Inc
$367.15
+1.01%
INDUSTRIALS · Cap: $14.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Watsco Inc generates 259% more annual revenue ($7.24B vs $2.02B). WSO leads profitability with a 6.9% profit margin vs 4.4%. DXPE appears more attractively valued with a PEG of 0.55. DXPE earns a higher WallStSmart Score of 59/100 (C).
DXPE
Buy59
out of 100
Grade: C
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-45.2%
Fair Value
$102.00
Current Price
$139.69
$37.69 premium
Margin of Safety
-413.3%
Fair Value
$83.30
Current Price
$367.15
$283.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Areas to Watch
4.4% margin — thin
Moderate valuation
6.9% margin — thin
Weak financial health signals
Revenue declined 10.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : DXPE
The strongest argument for DXPE centers on PEG Ratio. Revenue growth of 12.0% demonstrates continued momentum. PEG of 0.55 suggests the stock is reasonably priced for its growth.
Bull Case : WSO
The strongest argument for WSO centers on Altman Z-Score. PEG of 1.48 suggests the stock is reasonably priced for its growth.
Bear Case : DXPE
The primary concerns for DXPE are Profit Margin. Thin 4.4% margins leave little buffer for downturns.
Bear Case : WSO
The primary concerns for WSO are P/E Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
WSO carries more volatility with a beta of 1.01 — expect wider price swings.
DXPE is growing revenue faster at 12.0% — sustainability is the question.
WSO generates stronger free cash flow (389M), providing more financial flexibility.
Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DXPE scores higher overall (59/100 vs 45/100) and 12.0% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
DXP Enterprises Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
DXP Enterprises, Inc. is dedicated to the distribution of maintenance, repair and operation (MRO) products, equipment and services to industrial and energy customers primarily in the United States and Canada. The company is headquartered in Houston, Texas.
Watsco Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.
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