DXP Enterprises Inc (DXPE)vsWatsco Inc (WSO)
DXPE
DXP Enterprises Inc
$169.05
-2.42%
INDUSTRIALS · Cap: $2.62B
WSO
Watsco Inc
$397.16
+0.63%
INDUSTRIALS · Cap: $15.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Watsco Inc generates 251% more annual revenue ($7.24B vs $2.06B). WSO leads profitability with a 6.8% profit margin vs 4.3%. DXPE appears more attractively valued with a PEG of 0.55. DXPE earns a higher WallStSmart Score of 50/100 (C-).
DXPE
Buy50
out of 100
Grade: C-
WSO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-43.0%
Fair Value
$103.59
Current Price
$169.05
$65.46 premium
Intrinsic value data unavailable for WSO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
4.3% margin — thin
Elevated debt levels
Earnings declined 2.0%
Premium valuation, high expectations priced in
0.1% revenue growth
6.8% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DXPE
The strongest argument for DXPE centers on PEG Ratio. PEG of 0.55 suggests the stock is reasonably priced for its growth.
Bull Case : WSO
The strongest argument for WSO centers on Altman Z-Score, Debt/Equity.
Bear Case : DXPE
The primary concerns for DXPE are P/E Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.76 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.
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 1.03 — expect wider price swings.
DXPE is growing revenue faster at 9.5% — sustainability is the question.
DXPE generates stronger free cash flow (26M), providing more financial flexibility.
Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DXPE scores higher overall (50/100 vs 45/100). 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.
DXP Enterprises Inc
INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA
DXP Enterprises, Inc. is dedicated to the distribution of maintenance, repair and operation (MRO) products, equipment and services to industrial and energy customers primarily in the United States and Canada. The company is headquartered in Houston, Texas.
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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