WSO vs. TDG
WSO (Watsco, Inc.) and TDG (TransDigm Group Incorporated) are both stocks. Both are in the Industrials sector — WSO in Industrial Distribution, TDG in Aerospace & Defense. Over the past 10 years, WSO returned 13.43%/yr vs 21.54%/yr for TDG. At a 0.39 correlation, their price movements are largely independent.
Performance
WSO vs. TDG - Performance Comparison
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Returns By Period
In the year-to-date period, WSO achieves a 12.76% return, which is significantly higher than TDG's -9.41% return. Over the past 10 years, WSO has underperformed TDG with an annualized return of 13.43%, while TDG has yielded a comparatively higher 21.54% annualized return.
WSO
- 1D
- -0.31%
- 1M
- -6.75%
- 6M
- -1.21%
- YTD
- 12.76%
- 1Y
- -18.61%
- 3Y*
- 3.14%
- 5Y*
- 8.71%
- 10Y*
- 13.43%
- ALL TIME*
- 15.78%
TDG
- 1D
- -0.80%
- 1M
- -9.30%
- 6M
- -16.92%
- YTD
- -9.41%
- 1Y
- -19.39%
- 3Y*
- 16.65%
- 5Y*
- 17.44%
- 10Y*
- 21.54%
- ALL TIME*
- 27.42%
WSO vs. TDG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WSO Watsco, Inc. | 12.76% | -27.02% | 13.22% | 77.00% | -17.74% | 42.09% | 30.57% | 34.99% | -15.54% | 18.36% |
TDG TransDigm Group Incorporated | -9.41% | 12.15% | 32.27% | 66.57% | 1.77% | 2.82% | 10.51% | 84.41% | 23.83% | 19.84% |
Correlation
The correlation between WSO and TDG is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Mar 15, 2006 | 0.39 |
The correlation between WSO and TDG shifts across timeframes, from 0.27 (1 year) to 0.40 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
WSO:
$15.27B
TDG:
$67.38B
WSO:
$13.07
TDG:
$34.78
WSO:
28.36
TDG:
34.64
WSO:
5.51
TDG:
1.03
WSO:
1.94
TDG:
7.37
WSO:
$7.24B
TDG:
$9.50B
WSO:
$2.05B
TDG:
$5.61B
WSO:
$778.38M
TDG:
$4.78B
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Return for Risk
WSO vs. TDG — Risk / Return Rank
WSO
TDG
WSO vs. TDG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Watsco, Inc. (WSO) and TransDigm Group Incorporated (TDG). 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 | TDG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.09 | ||
| Sortino ratioReturn per unit of downside risk | +0.10 | ||
| Omega ratioGain probability vs. loss probability | 0.93 | 0.90 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | -0.77 | +0.21 |
| Martin ratioReturn relative to average drawdown | -0.91 | -1.26 | +0.35 |
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Drawdowns
WSO vs. TDG - Drawdown Comparison
The maximum WSO drawdown since its inception was -64.30%, roughly equal to the maximum TDG drawdown of -62.64%. Use the drawdown chart below to compare losses from any high point for WSO and TDG.
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Drawdown Indicators
| WSO | TDG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -64.30% | -62.64% | -1.66% |
Max Drawdown (1Y)Largest decline over 1 year | -33.42% | -25.30% | -8.12% |
Max Drawdown (3Y)Largest decline over 3 years | -41.62% | -25.30% | -16.32% |
Max Drawdown (5Y)Largest decline over 5 years | -41.62% | -25.30% | -16.32% |
Max Drawdown (10Y)Largest decline over 10 years | -41.62% | -62.64% | +21.02% |
Current DrawdownCurrent decline from peak | -31.43% | -20.56% | -10.87% |
Average DrawdownAverage peak-to-trough decline | -18.08% | -7.99% | -10.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 20.55% | 15.46% | +5.09% |
Volatility
WSO vs. TDG - Volatility Comparison
Watsco, Inc. (WSO) has a higher volatility of 9.77% compared to TransDigm Group Incorporated (TDG) at 7.59%. This indicates that WSO's price experiences larger fluctuations and is considered to be riskier than TDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WSO | TDG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.77% | 7.59% | +2.18% |
Volatility (6M)Calculated over the trailing 6-month period | 23.12% | 22.59% | +0.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 32.38% | 29.06% | +3.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.39% | 27.92% | +2.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.94% | 33.89% | -5.95% |
Dividends
WSO vs. TDG - Dividend Comparison
WSO's dividend yield for the trailing twelve months is around 3.40%, less than TDG's 7.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TDG TransDigm Group Incorporated | 7.47% | 6.77% | 5.92% | 3.46% | 2.94% | 0.00% | 0.00% | 11.16% | 0.00% | 8.01% | 9.64% | 0.00% |
WSO Watsco, Inc. | 3.40% | 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. TDG - Financials Comparison
This section allows you to compare key financial metrics between Watsco, Inc. and TransDigm Group Incorporated. 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. TDG - Profitability Comparison
WSO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 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%.
TDG - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, TransDigm Group Incorporated reported a gross profit of 1.51B and revenue of 2.54B. Therefore, the gross margin over that period was 59.4%.
WSO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Watsco, Inc. reported an operating income of 110.18M and revenue of 1.53B, resulting in an operating margin of 7.2%.
TDG - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, TransDigm Group Incorporated reported an operating income of 1.18B and revenue of 2.54B, resulting in an operating margin of 46.3%.
WSO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Watsco, Inc. reported a net income of 79.07M and revenue of 1.53B, resulting in a net margin of 5.2%.
TDG - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, TransDigm Group Incorporated reported a net income of 535.00M and revenue of 2.54B, resulting in a net margin of 21.0%.
Frequently Asked Questions
WSO and TDG have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WSO has higher volatility (9.77%) compared to TDG (7.59%). In terms of maximum drawdown, WSO dropped -64.30% vs TDG's -62.64%.
WSO currently has the higher Sharpe Ratio (-0.58 vs -0.67), 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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