WallStSmart

WW Grainger Inc (GWW)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WW Grainger Inc generates 154% more annual revenue ($18.38B vs $7.24B). GWW leads profitability with a 9.7% profit margin vs 6.8%. WSO appears more attractively valued with a PEG of 1.71. GWW earns a higher WallStSmart Score of 62/100 (C+).

GWW

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 8.5Value: 3.3Quality: 6.3
Piotroski: 5/9

WSO

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 6.5Value: 3.3Quality: 7.3
Piotroski: 3/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GWWSignificantly Overvalued (-76.4%)

Margin of Safety

-76.4%

Fair Value

$681.66

Current Price

$1233.71

$552.05 premium

UndervaluedFair: $681.66Overvalued
WSOSignificantly Overvalued (-45.5%)

Margin of Safety

-45.5%

Fair Value

$293.84

Current Price

$420.60

$126.76 premium

UndervaluedFair: $293.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GWW2 strengths · Avg: 9.5/10
Return on EquityProfitability
46.1%10/10

Every $100 of equity generates 46 in profit

Market CapQuality
$58.25B9/10

Large-cap with strong market position

WSO1 strengths · Avg: 10.0/10
Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Areas to Watch

GWW3 concerns · Avg: 4.0/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

P/E RatioValuation
33.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.4x4/10

Trading at 13.4x book value

WSO4 concerns · Avg: 3.8/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
35.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : GWW

The strongest argument for GWW centers on Return on Equity, Market Cap. Revenue growth of 10.1% demonstrates continued momentum.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score.

Bear Case : GWW

The primary concerns for GWW are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : WSO

The primary concerns for WSO are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

WSO carries more volatility with a beta of 1.10 — expect wider price swings.

GWW is growing revenue faster at 10.1% — sustainability is the question.

GWW generates stronger free cash flow (269M), providing more financial flexibility.

Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GWW scores higher overall (62/100 vs 45/100) and 10.1% 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.

WW Grainger Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. (Bill) Grainger.

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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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