Now Inc (DNOW)vsWatsco Inc (WSO)
DNOW
Now Inc
$13.23
-2.00%
INDUSTRIALS · Cap: $2.56B
WSO
Watsco Inc
$371.38
+0.63%
INDUSTRIALS · Cap: $15.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Watsco Inc generates 113% more annual revenue ($7.24B vs $3.40B). WSO leads profitability with a 6.8% profit margin vs -4.5%. DNOW earns a higher WallStSmart Score of 55/100 (C).
DNOW
Buy55
out of 100
Grade: C
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.4%
Fair Value
$12.52
Current Price
$13.23
$0.71 premium
Intrinsic value data unavailable for WSO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 97.5% year-over-year
Earnings expanding 90.5% YoY
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
ROE of -6.6% — below average capital efficiency
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
0.1% revenue growth
6.8% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DNOW
The strongest argument for DNOW centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 97.5% demonstrates continued momentum.
Bull Case : WSO
The strongest argument for WSO centers on Altman Z-Score, Debt/Equity.
Bear Case : DNOW
The primary concerns for DNOW are Altman Z-Score, Piotroski F-Score, Return on Equity.
Bear Case : WSO
The primary concerns for WSO are P/E Ratio, Revenue Growth, Profit Margin.
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 1.03 — expect wider price swings.
DNOW is growing revenue faster at 97.5% — sustainability is the question.
WSO generates stronger free cash flow (-26M), providing more financial flexibility.
Bottom Line
DNOW scores higher overall (55/100 vs 45/100) and 97.5% 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.
Compare with Other INDUSTRIAL DISTRIBUTION Stocks
Want to dig deeper into these stocks?