WallStSmart

Applied Industrial Technologies (AIT)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Watsco Inc generates 51% more annual revenue ($7.28B vs $4.84B). AIT leads profitability with a 8.3% profit margin vs 6.5%. WSO appears more attractively valued with a PEG of 1.35. WSO earns a higher WallStSmart Score of 54/100 (C-).

AIT

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 7.0Value: 3.7Quality: 8.0
Piotroski: 3/9Altman Z: 4.35

WSO

Buy

54

out of 100

Grade: C-

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIT3 strengths · Avg: 9.3/10
Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.7%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

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

AIT4 concerns · Avg: 3.3/10
P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.952/10

Expensive relative to growth rate

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
27.5x4/10

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 : AIT

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

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bear Case : AIT

The primary concerns for AIT are P/E Ratio, EPS Growth, Piotroski F-Score.

Bear Case : WSO

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

Key Dynamics to Monitor

WSO carries more volatility with a beta of 1.01 — expect wider price swings.

AIT is growing revenue faster at 7.3% — sustainability is the question.

AIT generates stronger free cash flow (95M), providing more financial flexibility.

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

Bottom Line

WSO scores higher overall (54/100 vs 51/100). 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.

Applied Industrial Technologies

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company is headquartered in Cleveland, Ohio.

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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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