WallStSmart

Core & Main Inc (CNM)vsWatsco Inc (WSO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Core & Main Inc generates 5% more annual revenue ($7.65B vs $7.28B). WSO leads profitability with a 6.5% profit margin vs 5.9%. CNM appears more attractively valued with a PEG of 1.20. CNM earns a higher WallStSmart Score of 55/100 (C-).

CNM

Buy

55

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.42

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

CNMSignificantly Overvalued (-26.8%)

Margin of Safety

-26.8%

Fair Value

$33.60

Current Price

$42.61

$9.01 premium

UndervaluedFair: $33.60Overvalued

Intrinsic value data unavailable for WSO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNM1 strengths · Avg: 9.0/10
Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

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

CNM3 concerns · Avg: 2.7/10
Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.353/10

Elevated debt levels

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

WSO4 concerns · Avg: 3.5/10
P/E RatioValuation
27.1x4/10

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 : CNM

The strongest argument for CNM centers on Return on Equity. PEG of 1.20 suggests the stock is reasonably priced for its growth.

Bull Case : WSO

The strongest argument for WSO centers on Altman Z-Score, Debt/Equity. PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bear Case : CNM

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

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 1.04 — expect wider price swings.

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

CNM generates stronger free cash flow (68M), providing more financial flexibility.

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

Bottom Line

CNM scores higher overall (55/100 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.

Core & Main Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Core & Main Inc. (CNM) is a leading distributor of waterworks and plumbing products across the United States, serving a diverse client base that includes municipalities, contractors, and industrial entities. The company emphasizes innovative and sustainable solutions for water management, wastewater treatment, and stormwater infrastructure, positioning itself to address the growing need for infrastructure modernization in line with strict environmental standards. With a strong supply chain and deep industry knowledge, Core & Main is well-equipped to tackle critical challenges in the utilities sector, reinforcing its status as a key player in promoting effective water management practices.

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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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