Head-To-Head Analysis: SiteOne Landscape Supply (NYSE:SITE) and Watsco (NYSE:WSO)

Watsco (NYSE:WSO) and SiteOne Landscape Supply (NYSE:SITE) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Watsco and SiteOne Landscape Supply”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Watsco	$7.24 billion	1.73	$496.99 million	$11.53	26.39
SiteOne Landscape Supply	$4.70 billion	0.82	$155.40 million	$3.65	24.25

Watsco has higher revenue and earnings than SiteOne Landscape Supply. SiteOne Landscape Supply is trading at a lower price-to-earnings ratio than Watsco, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Watsco and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Watsco	6.53%	14.40%	10.17%
SiteOne Landscape Supply	3.41%	9.76%	4.83%

Analyst Ratings

This is a breakdown of recent ratings for Watsco and SiteOne Landscape Supply, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Watsco	0	9	2	0	2.18
SiteOne Landscape Supply	1	6	7	0	2.43

Watsco currently has a consensus price target of $395.50, suggesting a potential upside of 29.96%. SiteOne Landscape Supply has a consensus price target of $135.27, suggesting a potential upside of 52.84%. Given SiteOne Landscape Supply’s stronger consensus rating and higher possible upside, analysts clearly believe SiteOne Landscape Supply is more favorable than Watsco.

Volatility & Risk

Watsco has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Institutional and Insider Ownership

89.7% of Watsco shares are owned by institutional investors. 12.9% of Watsco shares are owned by company insiders. Comparatively, 2.1% of SiteOne Landscape Supply shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Watsco beats SiteOne Landscape Supply on 10 of the 14 factors compared between the two stocks.

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.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.