Head-To-Head Analysis: Watsco (NYSE:WSO) and BOC Aviation (OTCMKTS:BCVVF)

BOC Aviation (OTCMKTS:BCVVF) and Watsco (NYSE:WSO) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Institutional & Insider Ownership

89.7% of Watsco shares are held by institutional investors. 12.9% of Watsco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for BOC Aviation and Watsco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOC Aviation	0	0	0	0	0.00
Watsco	0	9	2	0	2.18

Watsco has a consensus target price of $395.50, indicating a potential upside of 26.55%. Given Watsco’s stronger consensus rating and higher probable upside, analysts plainly believe Watsco is more favorable than BOC Aviation.

Valuation and Earnings

This table compares BOC Aviation and Watsco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOC Aviation	N/A	N/A	N/A	N/A	N/A
Watsco	$7.24 billion	1.76	$496.99 million	$11.53	27.11

Watsco has higher revenue and earnings than BOC Aviation.

Profitability

This table compares BOC Aviation and Watsco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BOC Aviation	N/A	N/A	N/A
Watsco	6.53%	14.40%	10.17%

Summary

Watsco beats BOC Aviation on 9 of the 9 factors compared between the two stocks.

About BOC Aviation

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company in Mainland China, Hong Kong, Macau, Taiwan, rest of the Asia Pacific, the Americas, Europe, the Middle East, and Africa. It offers a range of services to airlines and aircraft owners, including direct operating and finance leases, sale and leaseback facilities, engine finance leases, and third-party asset management. The company also provides aircraft remarketing and technical management services to airlines, banks, and other investors; debt financing and other financial services for airlines; and sells aircrafts. It operates a fleet of owned, managed, and on order aircrafts. The company was incorporated in 1993 and is headquartered in Singapore. BOC Aviation Limited operates as a subsidiary of Bank of China Limited.

About Watsco

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.