Now Inc (DNOW)vsWatsco Inc (WSO)
DNOW
Now Inc
$12.12
+1.08%
INDUSTRIALS · Cap: $2.23B
WSO
Watsco Inc
$367.15
+1.01%
INDUSTRIALS · Cap: $14.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Watsco Inc generates 157% more annual revenue ($7.24B vs $2.82B). WSO leads profitability with a 6.9% profit margin vs -3.2%. DNOW earns a higher WallStSmart Score of 59/100 (C).
DNOW
Buy59
out of 100
Grade: C
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DNOW.
Margin of Safety
-413.3%
Fair Value
$83.30
Current Price
$367.15
$283.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 68.0% year-over-year
Earnings expanding 90.5% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Distress zone — elevated risk
Operating margin of 1.1%
Weak financial health signals
ROE of -5.2% — below average capital efficiency
Moderate valuation
6.9% margin — thin
Weak financial health signals
Revenue declined 10.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : DNOW
The strongest argument for DNOW centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 68.0% demonstrates continued momentum.
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 : DNOW
The primary concerns for DNOW are Altman Z-Score, Operating Margin, Piotroski F-Score.
Bear Case : WSO
The primary concerns for WSO are P/E Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
DNOW profiles as a hypergrowth stock while WSO is a value play — different risk/reward profiles.
WSO carries more volatility with a beta of 1.01 — expect wider price swings.
DNOW is growing revenue faster at 68.0% — sustainability is the question.
WSO generates stronger free cash flow (389M), providing more financial flexibility.
Bottom Line
DNOW scores higher overall (59/100 vs 45/100) and 68.0% revenue growth. Both earn "Buy" 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.
Now Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
NOW Inc. distributes downstream power and industrial products for oil refining, chemical processing, LNG terminals, power generation services, and industrial manufacturing operations in the United States, Canada, and internationally. The company is headquartered in Houston, Texas.
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.
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