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.

Compare

Total returnTXT vs WSO

growth of $100 · dividends reinvested · last 10y
TXT +105.1% (+7.4%/yr)WSO +188.7% (+11.2%/yr)WSO compounded faster over this window
100200300400500Start $10020182020202220242026$205$289
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

MetricTXTWSO
P/E ratio15.5427.03
Forward P/E13.4425.92
P/S ratio0.941.64
P/B ratio1.793.98
EV / EBITDA10.9016.72
FCF yield4.32%5.85%

Profitability

MetricTXTWSO
Gross margin11.97%27.87%
Operating margin8.27%9.32%
Net margin6.12%6.53%
ROE11.63%15.89%
ROIC7.34%13.49%

Dividends

MetricTXTWSO
Dividend yield0.10%4.02%
Payout ratio1.57%102.86%

Growth (annualized)

MetricTXTWSO
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.

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.