WSO vs. COST
WSO (Watsco, Inc.) and COST (Costco Wholesale Corporation) are both stocks. WSO operates in Industrial Distribution (Industrials), while COST operates in Discount Stores (Consumer Defensive). Over the past 10 years, WSO returned 14.22%/yr vs 22.25%/yr for COST. At a 0.27 correlation, their price movements are largely independent.
Performance
WSO vs. COST - Performance Comparison
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Returns By Period
In the year-to-date period, WSO achieves a 12.12% return, which is significantly lower than COST's 13.35% return. Over the past 10 years, WSO has underperformed COST with an annualized return of 14.22%, while COST has yielded a comparatively higher 22.25% annualized return.
WSO
- 1D
- 0.12%
- 1M
- -11.59%
- YTD
- 12.12%
- 6M
- 10.84%
- 1Y
- -13.93%
- 3Y*
- 4.56%
- 5Y*
- 8.18%
- 10Y*
- 14.22%
COST
- 1D
- 0.30%
- 1M
- -3.37%
- YTD
- 13.35%
- 6M
- 10.14%
- 1Y
- -3.42%
- 3Y*
- 25.18%
- 5Y*
- 22.05%
- 10Y*
- 22.25%
WSO vs. COST - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WSO Watsco, Inc. | 12.12% | -27.02% | 13.22% | 77.00% | -17.74% | 42.09% | 30.57% | 34.99% | -15.54% | 18.36% |
COST Costco Wholesale Corporation | 13.35% | -5.39% | 39.62% | 49.00% | -19.05% | 51.82% | 32.67% | 45.70% | 10.60% | 22.37% |
Correlation
The correlation between WSO and COST is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.33 |
Correlation (All Time) Calculated using the full available price history since Sep 23, 1993 | 0.27 |
Over the past year, the correlation between WSO and COST has dropped to 0.04 - well below their long-term average of 0.27, suggesting their price drivers have been diverging.
Fundamentals
WSO:
$13.08
COST:
$26.51
WSO:
28.43
COST:
36.77
WSO:
5.52
COST:
2.88
WSO:
1.95
COST:
1.11
WSO:
$7.24B
COST:
$293.59B
WSO:
$2.05B
COST:
$11.12B
WSO:
$778.38M
COST:
$12.48B
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Return for Risk
WSO vs. COST — Risk / Return Rank
WSO
COST
WSO vs. COST - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Watsco, Inc. (WSO) and Costco Wholesale Corporation (COST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| WSO | COST | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 0.95 | 0.98 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.42 | -0.22 | -0.20 |
| Martin ratioReturn relative to average drawdown | -0.71 | -0.51 | -0.20 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| WSO | COST | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.45 | -0.18 | -0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.27 | 0.98 | -0.70 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.51 | 1.02 | -0.50 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.47 | 0.59 | -0.12 |
Drawdowns
WSO vs. COST - Drawdown Comparison
The maximum WSO drawdown since its inception was -64.30%, which is greater than COST's maximum drawdown of -53.39%. Use the drawdown chart below to compare losses from any high point for WSO and COST.
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Drawdown Indicators
| WSO | COST | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -64.30% | -53.39% | -10.91% |
Max Drawdown (1Y)Largest decline over 1 year | -33.42% | -15.38% | -18.04% |
Max Drawdown (3Y)Largest decline over 3 years | -41.62% | -20.74% | -20.88% |
Max Drawdown (5Y)Largest decline over 5 years | -41.62% | -31.40% | -10.22% |
Max Drawdown (10Y)Largest decline over 10 years | -41.62% | -31.40% | -10.22% |
Current DrawdownCurrent decline from peak | -31.82% | -10.93% | -20.89% |
Average DrawdownAverage peak-to-trough decline | -18.05% | -13.36% | -4.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.66% | 7.15% | +12.51% |
Volatility
WSO vs. COST - Volatility Comparison
Watsco, Inc. (WSO) and Costco Wholesale Corporation (COST) have volatilities of 7.45% and 7.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WSO | COST | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.45% | 7.71% | -0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 22.48% | 14.53% | +7.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 31.17% | 18.79% | +12.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.12% | 22.71% | +7.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.80% | 21.95% | +5.85% |
Dividends
WSO vs. COST - Dividend Comparison
WSO's dividend yield for the trailing twelve months is around 3.31%, more than COST's 0.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
COST Costco Wholesale Corporation | 0.55% | 0.59% | 0.49% | 2.87% | 0.76% | 0.54% | 3.38% | 0.86% | 1.08% | 4.81% | 1.09% | 4.06% |
WSO Watsco, Inc. | 3.31% | 3.47% | 2.23% | 2.29% | 3.43% | 2.44% | 3.06% | 3.55% | 4.02% | 2.71% | 2.43% | 2.39% |
Financials
WSO vs. COST - Financials Comparison
This section allows you to compare key financial metrics between Watsco, Inc. and Costco Wholesale Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
WSO vs. COST - Profitability Comparison
WSO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported a gross profit of 427.56M and revenue of 1.53B. Therefore, the gross margin over that period was 27.9%.
COST - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a gross profit of -17.68B and revenue of 70.53B. Therefore, the gross margin over that period was -25.1%.
WSO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported an operating income of 110.18M and revenue of 1.53B, resulting in an operating margin of 7.2%.
COST - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported an operating income of 2.82B and revenue of 70.53B, resulting in an operating margin of 4.0%.
WSO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Watsco, Inc. reported a net income of 79.07M and revenue of 1.53B, resulting in a net margin of 5.2%.
COST - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a net income of 2.19B and revenue of 70.53B, resulting in a net margin of 3.1%.
Frequently Asked Questions
WSO and COST have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
COST has higher volatility (7.71%) compared to WSO (7.45%). In terms of maximum drawdown, WSO dropped -64.30% vs COST's -53.39%.
COST currently has the higher Sharpe Ratio (-0.18 vs -0.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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