WallStSmart

Pool Corporation (POOL)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Watsco Inc generates 35% more annual revenue ($7.24B vs $5.36B). POOL leads profitability with a 7.6% profit margin vs 6.8%. WSO appears more attractively valued with a PEG of 1.50. POOL earns a higher WallStSmart Score of 53/100 (C-).

POOL

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 7.0Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.84

WSO

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 6.5Value: 5.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

POOLSignificantly Overvalued (-83.1%)

Margin of Safety

-83.1%

Fair Value

$148.25

Current Price

$185.52

$37.27 premium

UndervaluedFair: $148.25Overvalued

Intrinsic value data unavailable for WSO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

POOL2 strengths · Avg: 9.0/10
Return on EquityProfitability
35.8%10/10

Every $100 of equity generates 36 in profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

WSO2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
4.7610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

POOL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Debt/EquityHealth
1.403/10

Elevated debt levels

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

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

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : POOL

The strongest argument for POOL centers on Return on Equity, P/E Ratio.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity.

Bear Case : POOL

The primary concerns for POOL are PEG Ratio, EPS Growth, Profit Margin.

Bear Case : WSO

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

Key Dynamics to Monitor

POOL carries more volatility with a beta of 1.09 — expect wider price swings.

POOL is growing revenue faster at 6.2% — sustainability is the question.

POOL generates stronger free cash flow (310M), providing more financial flexibility.

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

Bottom Line

POOL scores higher overall (53/100 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.

Pool Corporation

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Pool Corporation is a major distributor of swimming pool supplies, equipment, and related outdoor products.

Visit Website →

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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