Watsco (WSO.B) Competitors

Watsco (NYSE:WSO.B) and TE Connectivity (NYSE:TEL) are both large-cap wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, media sentiment, valuation, profitability and analyst recommendations.

Which has better valuation & earnings, WSO.B or TEL?

TE Connectivity has higher revenue and earnings than Watsco. Watsco is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Watsco	$7.51B	2.25	$536.29M	$13.04	32.04
TE Connectivity	$15.85B	3.73	$3.19B	$4.83	41.42

Does the media prefer WSO.B or TEL?

In the previous week, TE Connectivity had 19 more articles in the media than Watsco. MarketBeat recorded 22 mentions for TE Connectivity and 3 mentions for Watsco. TE Connectivity's average media sentiment score of 1.58 beat Watsco's score of -0.01 indicating that TE Connectivity is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Watsco	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral
TE Connectivity	21 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do insiders & institutionals believe in WSO.B or TEL?

0.1% of Watsco shares are owned by institutional investors. Comparatively, 91.4% of TE Connectivity shares are owned by institutional investors. 13.8% of Watsco shares are owned by company insiders. Comparatively, 0.9% of TE Connectivity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Is WSO.B or TEL more profitable?

TE Connectivity has a net margin of 8.78% compared to Watsco's net margin of 7.08%. TE Connectivity's return on equity of 20.22% beat Watsco's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Watsco	7.08%	16.96%	11.69%
TE Connectivity	8.78%	20.22%	10.61%

Do analysts rate WSO.B or TEL?

TE Connectivity has a consensus price target of $194.80, suggesting a potential downside of 2.62%. Given TE Connectivity's stronger consensus rating and higher probable upside, analysts plainly believe TE Connectivity is more favorable than Watsco.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Watsco	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
TE Connectivity	0 Sell rating(s)	4 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.77

Is WSO.B or TEL a better dividend stock?

Watsco pays an annual dividend of $12.00 per share and has a dividend yield of 2.9%. TE Connectivity pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. Watsco pays out 92.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TE Connectivity pays out 58.8% of its earnings in the form of a dividend. TE Connectivity has increased its dividend for 12 consecutive years.

Which has more volatility and risk, WSO.B or TEL?

Watsco has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Summary

TE Connectivity beats Watsco on 16 of the 20 factors compared between the two stocks.