Applied Industrial Technologies
AIT · Trading Companies & Distributors
$317.00
0.8%Watsco
WSO · Trading Companies & Distributors
$322.98
1.2%The short version
- Watsco is the larger business, with $7.2B of revenue in fiscal 2025 against $5.0B for Applied Industrial Technologies.
- Applied Industrial Technologies grew revenue faster (8.8%, against −5.0%).
- Applied Industrial Technologies kept more of each dollar of sales as operating profit (11.1% operating margin, against 10.0% operating margin).
- Applied Industrial Technologies turned more of its sales into free cash flow (9.3% FCF margin, against 7.4% FCF margin).
- Applied Industrial Technologies earned a higher return on the capital invested in it (20.8%, against 20.1%).
| Latest fiscal year | AIT · FY26 | WSO · FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.0B | $12.3B |
| Revenue | $5.0B | $7.2B |
| Free cash flow | $461M | $535M |
| Net income | $415M | $497M |
| Growth | ||
| Revenue growth | 8.8% | −5.0% |
| 5-year growth | 9.0% | 7.5% |
| Share count change | −2.5% | 1.0% |
| Profitability | ||
| Gross margin | 30.3% | 28.1% |
| Operating margin | 11.1% | 10.0% |
| Net margin | 8.4% | 6.9% |
| FCF margin | 9.3% | 7.4% |
| Return on capital | 20.8% | 20.1% |
| Return on equity | 22.4% | 18.3% |
| Balance sheet | ||
| Net debt | $135M | −$255M |
| Net debt / EBITDA | 0.2x | −0.3x |
| Dividends and buybacks | $390M | $474M |
| Valuation & quality | ||
| P/E | — | 27.8x |
| Piotroski F-score | 7 | 6 |
FY17
AIT $2.6B
WSO $4.3B
FY18
AIT $3.1B
WSO $4.5B
FY19
AIT $3.5B
WSO $4.8B
FY20
AIT $3.2B
WSO $5.1B
FY21
AIT $3.2B
WSO $6.3B
FY22
AIT $3.8B
WSO $7.3B
FY23
AIT $4.4B
WSO $7.3B
FY24
AIT $4.5B
WSO $7.6B
FY25
AIT $4.6B
WSO $7.2B
FY26
AIT $5.0B
WSO —
AIT
WSO
FY17
AIT 6.8%
WSO 8.2%
FY18
AIT 7.4%
WSO 8.2%
FY19
AIT 6.7%
WSO 7.7%
FY20
AIT 2.7%
WSO 7.9%
FY21
AIT 6.4%
WSO 10.0%
FY22
AIT 9.4%
WSO 11.4%
FY23
AIT 10.7%
WSO 10.9%
FY24
AIT 11.1%
WSO 10.3%
FY25
AIT 10.9%
WSO 10.0%
FY26
AIT 11.1%
WSO —
AIT
WSO
FY17
AIT $148M
WSO $289M
FY18
AIT $124M
WSO $153M
FY19
AIT $162M
WSO $318M
FY20
AIT $277M
WSO $518M
FY21
AIT $226M
WSO $324M
FY22
AIT $169M
WSO $536M
FY23
AIT $317M
WSO $526M
FY24
AIT $347M
WSO $743M
FY25
AIT $465M
WSO $535M
FY26
AIT $461M
WSO —
AIT
WSO
FY17
AIT 15.1%
WSO 17.9%
FY18
AIT 11.8%
WSO 19.0%
FY19
AIT 10.0%
WSO 16.3%
FY20
AIT 2.7%
WSO 16.8%
FY21
AIT 11.2%
WSO 24.4%
FY22
AIT 17.7%
WSO 30.1%
FY23
AIT 21.5%
WSO 24.3%
FY24
AIT 21.6%
WSO 22.4%
FY25
AIT 20.3%
WSO 20.1%
FY26
AIT 20.8%
WSO —
AIT
WSO
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Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.