AOS vs LII vs WSO vs AAON vs MWA

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus -5. 0% for Watsco, Inc. (WSO). A. O. Smith Corporation (AOS) offers the better valuation at 15. 6x trailing P/E (15. 4x forward), making it the more compelling value choice. Analysts rate AAON, Inc. (AAON) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, A.

O. Smith Corporation (AOS) is the cheapest at 15. 6x versus AAON, Inc. at 100. 2x. On forward P/E, A. O. Smith Corporation is actually cheaper at 15. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Mueller Water Products, Inc. wins at 0. 84x versus AAON, Inc. 's 12. 01x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +196. 3%, compared to -6. 5% for A. O. Smith Corporation (AOS). Over 10 years, the gap is even starker: AAON returned +612. 1% versus AOS's +81. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), A.

O. Smith Corporation (AOS) is the lower-risk stock at 0. 81β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 126% more volatile than AOS relative to the S&P 500. On balance sheet safety, A. O. Smith Corporation (AOS) carries a lower debt/equity ratio of 10% versus 177% for Lennox International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AAON, Inc.

(AAON) is pulling ahead at 20. 1% versus -5. 0% for Watsco, Inc. (WSO). On earnings-per-share growth, the picture is similar: Mueller Water Products, Inc. grew EPS 64. 9% year-over-year, compared to -36. 1% for AAON, Inc.. Over a 3-year CAGR, AAON leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Lennox International Inc.

(LII) is the more profitable company, earning 15. 1% net margin versus 6. 9% for Watsco, Inc. — meaning it keeps 15. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LII leads at 19. 5% versus 9. 6% for WSO. At the gross margin level — before operating expenses — AOS leads at 38. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Mueller Water Products, Inc. (MWA) is the more undervalued stock at a PEG of 0. 84x versus AAON, Inc. 's 12. 01x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, A. O. Smith Corporation (AOS) trades at 15. 4x forward P/E versus 65. 3x for AAON, Inc. — 49. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MWA: 23. 9% to $33. 33.

All stocks in this comparison pay dividends.

Watsco, Inc. (WSO) offers the highest yield at 2. 9%, versus 0. 3% for AAON, Inc. (AAON).

For long-horizon retirement investors, A.

O. Smith Corporation (AOS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 81), 2. 3% yield). AAON, Inc. (AAON) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AOS: +81. 4%, AAON: +612. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AOS is a small-cap deep-value stock; LII is a mid-cap quality compounder stock; WSO is a mid-cap quality compounder stock; AAON is a mid-cap high-growth stock; MWA is a small-cap quality compounder stock. AOS, LII, WSO, MWA pay a dividend while AAON does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.