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STOCK COMPARISON

Watsco vs WW Grainger: Fair Value & Quality

Both stocks run through our valuation models. Here is how Watsco (WSO) and WW Grainger (GWW) compare, as of Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees Watsco as the less overvalued of the two: Watsco trades at $321 versus a fair value of $268 (-16%), while WW Grainger trades at $1,283 versus $626 (-51%).
Watsco
WSO · USD · Industrials
-16%
upside to fair value
overvalued
Price$321
Fair Value$268
Quality53/100
WW Grainger
GWW · USD · Industrials
-51%
upside to fair value
overvalued
Price$1,283
Fair Value$626
Quality72/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

WatscoWW Grainger
Valuation
31.8×P/E (TTM)37.0×
2.19×P/S (TTM)3.53×
5.70×P/B15.69×
21.0×EV/EBITDA21.6×
1.53×PEG2.15×
3.1%Dividend yield0.7%
$12.00Dividend per share$9.04
Profitability
7%Net margin10%
7%Operating margin17%
19%Return on equity46%
10%Return on assets20%
Growth
0%Revenue growth (YoY)10%
-0.2%Avg. growth/yr (3Y)5.6%
7.4%Avg. growth/yr (5Y)8.7%
Balance & size
Debt / equity0.57×
$16BMarket cap$65B
mixedGrowth qualityhealthy

WW Grainger leads: 6 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Watscoof which business quality 65 · market factors 29 WW Graingerof which business quality 68 · market factors 71
ProfitabilityMargins and returns on capital today
71
89
Quality GrowthAre margins and returns improving?
36
44
CashflowEarnings quality: real cash, not paper profit
55
46
Fin. StrengthBalance sheet, leverage, solvency risk
85
72
InvestmentDisciplined investing over empire-building
74
55
Low VolatilityCalm price path (market factor)
57
69
MomentumPrice trend over the last 3–12 months (market factor)
23
70
52W MomentumDistance to the 52-week high (market factor)
5
77
Net IssuanceBuybacks instead of dilution
66
100

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Watsco

DCF Models$314
Earnings-Based$158
Multiples$273
Asset-Based$52.44
Growth DCF$315
Economic Profit$173
Growth Earnings$230

19 of 24 models see the stock below the current price.

WW Grainger

DCF Models$610
Earnings-Based$340
Dividend Discount$169
Multiples$713
Asset-Based$58.76
Growth DCF$562
Economic Profit$467
Growth Earnings$640

26 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Watsco
Bear $196Fair Value $268Bull $335
$321 = current price (white tick)
WW Grainger
Bear $368Fair Value $626Bull $949
$1,283 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Watsco · Industrials

Quality score53 · above median
Fair value upside-16% · above median

WW Grainger · Industrials

Quality score72 · Top 25%
Fair value upside-51% · below median

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees Watsco as the less overvalued of the two: Watsco trades at $321 versus a fair value of $268 (-16%), while WW Grainger trades at $1,283 versus $626 (-51%).

WW Grainger has the higher quality score (72/100).

See the full analysis →

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.