Contrasting Watsco (WSO) and CCOM Group (CCOM)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Watsco and CCOM Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watsco 1 6 2 0 2.11
CCOM Group 0 0 0 0 N/A

Watsco currently has a consensus target price of $180.29, indicating a potential upside of 19.45%. Given Watsco’s higher probable upside, research analysts plainly believe Watsco is more favorable than CCOM Group.

Risk and Volatility

Watsco has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, CCOM Group has a beta of 0.99, indicating 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 27.54
CCOM Group $92.33 million 0.07 $510,000.00 N/A N/A

Watsco has higher revenue and earnings than CCOM Group.

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 5.15% 14.00% 10.27%
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. 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.

Institutional and Insider Ownership

81.0% of Watsco shares are held by institutional investors. 13.5% 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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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