FERG vs WSO: Ferguson Plc and Watsco compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Ferguson Plc is the larger company, worth $40.9B, about 3.9 times Watsco.
- Ferguson Plc grew revenue faster over the last year (+3.8% vs +2.1%).
- Watsco keeps more of each dollar of revenue as operating profit (9.4% vs 8.5%).
- On earnings, Watsco is the cheaper stock (21.3x vs 23.6x).
- Ferguson Plc's price assumes faster free cash flow growth: about 8% a year, against 5% for Watsco (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | FERG | WSO |
|---|---|---|
| Market cap | $40.9B | $10.5B |
| Share price | $220.04 | $279.90 |
| Revenue (last fiscal year) | $30.8B | $7.2B |
| Free cash flow (last fiscal year) | $1.6B | $535M |
| Revenue growth, last year | +3.8% | +2.1% |
| Revenue growth per year, last 5 fiscal years | +2.5% | +3.6% |
| Operating margin | 8.5% | 9.4% |
| Net margin | 6.0% | 6.5% |
| Return on equity | 29.9% | 15.9% |
| P/E (trailing) | 23.6x | 21.3x |
| Price / free cash flow | 25.5x | 19.7x |
| EV / EBITDA | 17.7x | 14.8x |
| FCF growth the price implies | 8.2% | 4.8% |
| Dividend yield | 1.9% | 4.6% |
| Debt / equity | 2.11x | 0.54x |
| Fundamental grade | C | C |
| Superinvestors holding it | 11 | 6 |
| Insider purchases, last 12 months | 2 | 0 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Ferguson Plc
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $28.6B | $859M | 9.9% |
| 2023 | $29.7B | $2.3B | 8.9% |
| 2024 | $29.6B | $1.5B | 8.9% |
| 2025 | $30.8B | $1.6B | 8.5% |
Watsco
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $6.3B | $324M | 10.0% |
| 2022 | $7.3B | $536M | 11.4% |
| 2023 | $7.3B | $526M | 10.9% |
| 2024 | $7.6B | $743M | 10.3% |
| 2025 | $7.2B | $535M | 10.0% |
Where the revenue comes from
Ferguson Plc · by segments, 2025
United States Segment$29.3B95%
Canada Segment$1.5B5%
Watsco · by regions, 2025
United States$6.6B91%
Latin America and Caribbean$344M5%
Canada$338M5%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open FERG in InvestinglyQuestions
Which is bigger, Ferguson Plc or Watsco?
Ferguson Plc (FERG), at $40.9B against $10.5B.
Is FERG or WSO cheaper?
By trailing P/E, Watsco (21.3x) is cheaper than Ferguson Plc (23.6x). A lower multiple can also mean the market expects less growth.
Which grows faster, FERG or WSO?
Ferguson Plc: revenue grew +3.8% over the last year, against +2.1%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.