Financial Comparison: Watsco (WSO.B) and CCOM Group (CCOM)

Watsco (NYSE:WSO.B) and CCOM Group (OTCMKTS:CCOM) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility and Risk

Watsco has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, CCOM Group has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Profitability

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 5.31% 14.47% 10.61%
CCOM Group 1.13% N/A N/A

Dividends

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.

Analyst Ratings

This is a breakdown of recent recommendations for Watsco and CCOM Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watsco 0 0 0 0 N/A
CCOM Group 0 0 0 0 N/A

Institutional & Insider Ownership

0.1% of Watsco shares are held by institutional investors. 14.5% of Watsco shares are held by company insiders. Comparatively, 60.0% of CCOM Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Watsco and CCOM Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Watsco $4.34 billion 1.32 $208.22 million N/A N/A
CCOM Group $92.33 million 0.07 $510,000.00 N/A N/A

Watsco has higher revenue and earnings than CCOM Group.

Summary

Watsco beats CCOM Group on 9 of the 11 factors compared between the two stocks.

Watsco Company Profile

Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products. It distributes products consisting of equipment, including residential ducted and ductless air conditioners ranging from 1 to 5 tons, gas, electric and oil furnaces ranging from 50,000 to 150,000 British Thermal Units, commercial air conditioning and heating equipment and systems ranging from 1.5 to 25 tons and other specialized equipment; parts, including replacement compressors and motors, and supplies, including ductwork, grills, registers, sheet metal, adhesives and other ancillary supplies. It also sells products to the refrigeration market.

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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