Ferguson Plc (FERG)vsWatsco Inc (WSO)
FERG
Ferguson Plc
$241.34
-2.11%
INDUSTRIALS · Cap: $47.81B
WSO
Watsco Inc
$420.60
-2.01%
INDUSTRIALS · Cap: $17.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Ferguson Plc generates 329% more annual revenue ($31.06B vs $7.24B). WSO leads profitability with a 6.8% profit margin vs 6.3%. FERG appears more attractively valued with a PEG of 1.63. FERG earns a higher WallStSmart Score of 59/100 (C).
FERG
Buy59
out of 100
Grade: C
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.6%
Fair Value
$203.15
Current Price
$241.34
$38.19 premium
Margin of Safety
-45.5%
Fair Value
$293.84
Current Price
$420.60
$126.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 33 in profit
Safe zone — low bankruptcy risk
Earnings expanding 23.0% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 8.0x book value
3.6% revenue growth
6.3% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.1% revenue growth
6.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : FERG
The strongest argument for FERG centers on Return on Equity, Altman Z-Score, EPS Growth.
Bull Case : WSO
The strongest argument for WSO centers on Altman Z-Score.
Bear Case : FERG
The primary concerns for FERG are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : WSO
The primary concerns for WSO are PEG Ratio, P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
FERG carries more volatility with a beta of 1.20 — expect wider price swings.
FERG is growing revenue faster at 3.6% — sustainability is the question.
FERG generates stronger free cash flow (680M), providing more financial flexibility.
Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FERG scores higher overall (59/100 vs 45/100). 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.
Ferguson Plc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada and Central Europe. The company is headquartered in Wokingham, the United Kingdom.
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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