WHR vs WSO

For growth investors, Watsco, Inc.

(WSO) is the stronger pick with -5. 0% revenue growth year-over-year, versus -6. 5% for Whirlpool Corporation (WHR). Whirlpool Corporation (WHR) offers the better valuation at 8. 5x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Whirlpool Corporation (WHR) a "Hold" — based on 19 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, Whirlpool Corporation (WHR) is the cheapest at 8.

5x versus Watsco, Inc. at 35. 0x. On forward P/E, Whirlpool Corporation is actually cheaper at 9. 5x.

Over the past 5 years, Watsco, Inc.

(WSO) delivered a total return of +59. 8%, compared to -68. 5% for Whirlpool Corporation (WHR). Over 10 years, the gap is even starker: WSO returned +281. 5% versus WHR's -41. 6%. 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), Watsco, Inc.

(WSO) is the lower-risk stock at 1. 10β versus Whirlpool Corporation's 1. 27β — meaning WHR is approximately 15% more volatile than WSO relative to the S&P 500. On balance sheet safety, Watsco, Inc. (WSO) carries a lower debt/equity ratio of 15% versus 3% for Whirlpool Corporation — giving it more financial flexibility in a downturn.

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

(WSO) is pulling ahead at -5. 0% versus -6. 5% for Whirlpool Corporation (WHR). On earnings-per-share growth, the picture is similar: Whirlpool Corporation grew EPS 196. 4% year-over-year, compared to -7. 9% for Watsco, Inc.. Over a 3-year CAGR, WSO leads at -0. 2% 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.

Watsco, Inc.

(WSO) is the more profitable company, earning 6. 9% net margin versus 2. 0% for Whirlpool Corporation — meaning it keeps 6. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSO leads at 9. 6% versus 4. 7% for WHR. At the gross margin level — before operating expenses — WSO leads at 28. 0%, 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.

On forward earnings alone, Whirlpool Corporation (WHR) trades at 9.

5x forward P/E versus 34. 0x for Watsco, Inc. — 24. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WHR: 27. 6% to $61. 50.

All stocks in this comparison pay dividends.

Whirlpool Corporation (WHR) offers the highest yield at 11. 0%, versus 2. 9% for Watsco, Inc. (WSO).

For long-horizon retirement investors, Watsco, Inc.

(WSO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 10), 2. 9% yield, +281. 5% 10Y return). Both have compounded well over 10 years (WSO: +281. 5%, WHR: -41. 6%), 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.

These companies operate in different sectors (WHR (Consumer Cyclical) and WSO (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WHR is a small-cap deep-value stock; WSO is a mid-cap quality compounder stock. 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.