Textron Inc. (TXT) vs Watsco, Inc. (WSO)
A side-by-side comparison of Textron Inc. and Watsco, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of August 27, 2026. Differences are shown without an overall score or investment verdict.
TXT
Textron Inc.
$82.35IndustrialsDelayed quote: Aug 27, 2026, 4:00 PM EDT
WSO
Watsco, Inc.
$313.05IndustrialsDelayed quote: Aug 27, 2026, 4:00 PM EDT
Total return — TXT vs WSO
growth of $100 · dividends reinvested · last 10yTXT +105.1% (+7.4%/yr)WSO +188.7% (+11.2%/yr)WSO compounded faster over this window
TXT WSO
TXT vs WSO: by the numbers
- •TXT is the larger company ($14.16B vs $12.89B market cap).
- •TXT trades at the lower trailing earnings multiple (15.54 vs 27.03 P/E), one valuation lens rather than an overall verdict.
- •WSO converts more revenue to profit (6.53% vs 6.12% net margin).
- •WSO pays the higher dividend yield (4.02% vs 0.10%).
Metrics side by side
Valuation
| Metric | TXT | WSO |
|---|---|---|
| P/E ratio | 15.54 | 27.03 |
| Forward P/E | 13.44 | 25.92 |
| P/S ratio | 0.94 | 1.64 |
| P/B ratio | 1.79 | 3.98 |
| EV / EBITDA | 10.90 | 16.72 |
| FCF yield | 4.32% | 5.85% |
Profitability
| Metric | TXT | WSO |
|---|---|---|
| Gross margin | 11.97% | 27.87% |
| Operating margin | 8.27% | 9.32% |
| Net margin | 6.12% | 6.53% |
| ROE | 11.63% | 15.89% |
| ROIC | 7.34% | 13.49% |
Dividends
| Metric | TXT | WSO |
|---|---|---|
| Dividend yield | 0.10% | 4.02% |
| Payout ratio | 1.57% | 102.86% |
Growth (annualized)
| Metric | TXT | WSO |
|---|---|---|
| Revenue CAGR (5Y) | 5.16% | 5.11% |
| EPS CAGR (5Y) | 30.49% | 11.75% |
| FCF CAGR (5Y) | -0.03% | 15.78% |
| Total return CAGR (5Y) | 2.58% | 5.33% |
Frequently asked
- Which has the lower trailing P/E, TXT or WSO?
- TXT has the lower trailing P/E: TXT trades at 15.54 and WSO at 27.03. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, TXT or WSO?
- Over the past five years, TXT grew revenue faster — TXT at a 5.16% CAGR versus WSO at 5.11%.
- Does TXT or WSO pay a bigger dividend?
- TXT yields 0.10% and WSO yields 4.02% based on trailing dividends and the latest price.
- Is TXT or WSO more profitable?
- WSO runs the higher net margin — TXT at 6.12% versus WSO at 6.53%.
- How have TXT and WSO total returns compared?
- Over the past 10 years, TXT delivered 7.38% and WSO delivered 11.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Textron P/E ratioWatsco P/E ratioTextron dividend yieldWatsco dividend yieldTextron ROEWatsco ROETextron operating marginWatsco operating marginTextron revenue growthWatsco revenue growthTextron free cash flowWatsco free cash flow
Textron & Watsco appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified August 27, 2026.