Watsco (NYSE:WSO) and CCOM Group (OTCMKTS:CCOM) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Institutional and Insider Ownership
81.0% of Watsco shares are owned by institutional investors. 13.5% of Watsco shares are owned by company insiders. Comparatively, 60.0% of CCOM Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Watsco and CCOM Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Watsco pays an annual dividend of $5.80 per share and has a dividend yield of 3.8%. CCOM Group does not pay a dividend. Watsco pays out 105.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Watsco has raised its dividend for 4 consecutive years.
Risk and Volatility
Watsco has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, CCOM Group has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Valuation and Earnings
This table compares Watsco and CCOM Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Watsco||$4.34 billion||1.30||$208.22 million||$5.48||27.52|
|CCOM Group||$92.33 million||0.07||$510,000.00||N/A||N/A|
Watsco has higher revenue and earnings than CCOM Group.
This is a breakdown of current ratings and recommmendations for Watsco and CCOM Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Watsco currently has a consensus price target of $180.29, suggesting a potential upside of 19.55%. Given Watsco’s higher probable upside, equities research analysts clearly believe Watsco is more favorable than CCOM Group.
Watsco beats CCOM Group on 12 of the 15 factors compared between the two stocks.
Watsco Company Profile
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.
CCOM Group Company Profile
CCOM Group, Inc., through its subsidiaries, distributes heating, ventilating, and air conditioning equipment (HVAC) in the United States. It also distributes whole-house generators; climate control systems; plumbing and electrical fixtures and supplies; and parts and accessories. In addition, the company provides control system design, custom control panel fabrication, technical field support, in-house training, and climate control consultation services for engineers and installers; and designs direct digital control systems, as well as systems that control multi-location facilities through the Internet. It markets its products to HVAC, plumbing, and electrical contractors; building contractors; and other users primarily in New Jersey, New York, Massachusetts, and portions of eastern Pennsylvania, Connecticut, and Vermont. The company was formerly known as Colonial Commercial Corp. and changed its name to CCOM Group, Inc. in July 2012. CCOM Group, Inc. was founded in 1964 and is based in Hawthorne, New Jersey.
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