WallStSmart

Pool Corporation (POOL)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Watsco Inc generates 37% more annual revenue ($7.24B vs $5.29B). POOL leads profitability with a 7.7% profit margin vs 6.9%. WSO appears more attractively valued with a PEG of 1.48. POOL earns a higher WallStSmart Score of 47/100 (D+).

POOL

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 7.0Value: 7.3Quality: 7.3
Piotroski: 4/9

WSO

Hold

45

out of 100

Grade: D+

Growth: 2.0Profit: 6.5Value: 7.3Quality: 7.3
Piotroski: 3/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

POOLSignificantly Overvalued (-267.6%)

Margin of Safety

-267.6%

Fair Value

$73.85

Current Price

$202.17

$128.32 premium

UndervaluedFair: $73.85Overvalued
WSOSignificantly Overvalued (-413.3%)

Margin of Safety

-413.3%

Fair Value

$83.30

Current Price

$367.15

$283.85 premium

UndervaluedFair: $83.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

POOL2 strengths · Avg: 9.5/10
Return on EquityProfitability
33.1%10/10

Every $100 of equity generates 33 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

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

Safe zone — low bankruptcy risk

Areas to Watch

POOL4 concerns · Avg: 2.8/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

WSO4 concerns · Avg: 3.0/10
P/E RatioValuation
29.7x4/10

Moderate valuation

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-10.0%2/10

Revenue declined 10.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : POOL

The strongest argument for POOL centers on Return on Equity, Debt/Equity.

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 : POOL

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

Bear Case : WSO

The primary concerns for WSO are P/E Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

POOL carries more volatility with a beta of 1.25 — expect wider price swings.

POOL is growing revenue faster at -0.5% — 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

POOL scores higher overall (47/100 vs 45/100). Both earn "Hold" 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.

Want to dig deeper into these stocks?