WSO vs. LII
WSO (Watsco, Inc.) and LII (Lennox International Inc.) are both stocks. Both are in the Industrials sector — WSO in Industrial Distribution, LII in Specialty Industrial Machinery. Over the past 10 years, WSO returned 14.53%/yr vs 15.59%/yr for LII. A 0.50 correlation means they provide meaningful diversification when combined.
Performance
WSO vs. LII - Performance Comparison
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Returns By Period
In the year-to-date period, WSO achieves a 14.72% return, which is significantly higher than LII's 5.78% return. Over the past 10 years, WSO has underperformed LII with an annualized return of 14.53%, while LII has yielded a comparatively higher 15.59% annualized return.
WSO
- 1D
- -1.01%
- 1M
- -5.63%
- YTD
- 14.72%
- 6M
- 9.01%
- 1Y
- -9.19%
- 3Y*
- 4.25%
- 5Y*
- 8.92%
- 10Y*
- 14.53%
LII
- 1D
- -0.94%
- 1M
- 2.43%
- YTD
- 5.78%
- 6M
- 1.83%
- 1Y
- -3.83%
- 3Y*
- 19.41%
- 5Y*
- 9.92%
- 10Y*
- 15.59%
WSO vs. LII - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WSO Watsco, Inc. | 14.72% | -27.02% | 13.22% | 77.00% | -17.74% | 42.09% | 30.57% | 34.99% | -15.54% | 18.36% |
LII Lennox International Inc. | 5.78% | -19.54% | 37.27% | 89.55% | -24.94% | 19.71% | 13.79% | 12.78% | 6.33% | 37.43% |
Correlation
The correlation between WSO and LII is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 1999 | 0.50 |
The correlation between WSO and LII shifts across timeframes, from 0.50 (all time) to 0.69 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
WSO:
$14.44B
LII:
$17.93B
WSO:
$13.08
LII:
$22.20
WSO:
29.09
LII:
23.07
WSO:
5.65
LII:
1.40
WSO:
1.99
LII:
3.44
WSO:
4.49
LII:
14.77
WSO:
$7.24B
LII:
$5.26B
WSO:
$2.05B
LII:
$1.74B
WSO:
$778.38M
LII:
$1.10B
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Return for Risk
WSO vs. LII — Risk / Return Rank
WSO
LII
WSO vs. LII - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Watsco, Inc. (WSO) and Lennox International Inc. (LII). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| WSO | LII | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.20 | ||
| Sortino ratioReturn per unit of downside risk | -0.32 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.00 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.34 | -0.18 | -0.17 |
| Martin ratioReturn relative to average drawdown | -0.58 | -0.29 | -0.30 |
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Drawdowns
WSO vs. LII - Drawdown Comparison
The maximum WSO drawdown since its inception was -64.30%, roughly equal to the maximum LII drawdown of -62.76%. Use the drawdown chart below to compare losses from any high point for WSO and LII.
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Drawdown Indicators
| WSO | LII | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -64.30% | -62.76% | -1.54% |
Max Drawdown (1Y)Largest decline over 1 year | -33.42% | -33.77% | +0.35% |
Max Drawdown (3Y)Largest decline over 3 years | -41.62% | -34.71% | -6.91% |
Max Drawdown (5Y)Largest decline over 5 years | -41.62% | -46.88% | +5.26% |
Max Drawdown (10Y)Largest decline over 10 years | -41.62% | -46.88% | +5.26% |
Current DrawdownCurrent decline from peak | -30.24% | -23.42% | -6.82% |
Average DrawdownAverage peak-to-trough decline | -18.06% | -14.51% | -3.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.82% | 20.90% | -1.08% |
Volatility
WSO vs. LII - Volatility Comparison
The current volatility for Watsco, Inc. (WSO) is 9.05%, while Lennox International Inc. (LII) has a volatility of 10.80%. This indicates that WSO experiences smaller price fluctuations and is considered to be less risky than LII based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WSO | LII | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.05% | 10.80% | -1.75% |
Volatility (6M)Calculated over the trailing 6-month period | 22.53% | 26.49% | -3.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 31.53% | 35.30% | -3.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.20% | 32.15% | -1.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.83% | 29.31% | -1.48% |
Dividends
WSO vs. LII - Dividend Comparison
WSO's dividend yield for the trailing twelve months is around 3.23%, more than LII's 1.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LII Lennox International Inc. | 1.02% | 1.04% | 0.75% | 0.97% | 1.71% | 1.09% | 1.12% | 1.21% | 1.11% | 0.94% | 1.08% | 1.10% |
WSO Watsco, Inc. | 3.23% | 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. LII - Financials Comparison
This section allows you to compare key financial metrics between Watsco, Inc. and Lennox International Inc.. 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. LII - 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%.
LII - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lennox International Inc. reported a gross profit of 351.30M and revenue of 1.14B. Therefore, the gross margin over that period was 31.0%.
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%.
LII - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lennox International Inc. reported an operating income of 163.50M and revenue of 1.14B, resulting in an operating margin of 14.4%.
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%.
LII - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lennox International Inc. reported a net income of 117.20M and revenue of 1.14B, resulting in a net margin of 10.3%.
Frequently Asked Questions
WSO and LII have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LII has higher volatility (10.80%) compared to WSO (9.05%). In terms of maximum drawdown, WSO dropped -64.30% vs LII's -62.76%.
LII currently has the higher Sharpe Ratio (-0.17 vs -0.37), 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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