WallStSmart

Resideo Technologies Inc (REZI)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Resideo Technologies Inc generates 5% more annual revenue ($7.65B vs $7.28B). WSO leads profitability with a 6.5% profit margin vs 5.6%. REZI trades at a lower P/E of 7.3x. REZI earns a higher WallStSmart Score of 60/100 (C+).

REZI

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 4.5Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.36

WSO

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 5.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

REZISignificantly Overvalued (-79.9%)

Margin of Safety

-79.9%

Fair Value

$20.23

Current Price

$18.88

$1.35 premium

UndervaluedFair: $20.23Overvalued

Intrinsic value data unavailable for WSO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

REZI3 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
928.0%10/10

Earnings expanding 928.0% YoY

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

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

REZI4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Profit MarginProfitability
5.6%3/10

5.6% margin — thin

Debt/EquityHealth
1.273/10

Elevated debt levels

Return on EquityProfitability
-16.9%2/10

ROE of -16.9% — below average capital efficiency

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
27.3x4/10

Moderate valuation

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : REZI

The strongest argument for REZI centers on P/E Ratio, Price/Book, EPS Growth.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : REZI

The primary concerns for REZI are Revenue Growth, Profit Margin, Debt/Equity.

Bear Case : WSO

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

Key Dynamics to Monitor

REZI carries more volatility with a beta of 1.57 — expect wider price swings.

WSO is growing revenue faster at 2.1% — sustainability is the question.

REZI generates stronger free cash flow (119M), providing more financial flexibility.

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

Bottom Line

REZI scores higher overall (60/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Resideo Technologies Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Resideo Technologies, Inc. develops, manufactures and sells comfort, residential thermal and security solutions for commercial and residential end markets in the United States, Europe and internationally. The company is headquartered in Austin, 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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