Applied Industrial Technologies vs Watsco
Watsco reported revenue of $7.2 billion in fiscal 2025, 1.5 times Applied Industrial Technologies' $5.0 billion in fiscal 2026. Applied Industrial Technologies' revenue grew 8.8% in its latest year, and Watsco's fell 5.0%. Applied Industrial Technologies had an operating margin of 11.1%, against 9.9% at Watsco. Free cash flow was $461 million at Applied Industrial Technologies and $535 million at Watsco. Their fiscal years end in different months (June 30 and December 31), so the periods don't line up exactly.
Side by side
| Applied Industrial Technologies | Watsco | |
|---|---|---|
| Latest fiscal year | FY2026, Jun 30, 2026 | FY2025, Dec 31, 2025 |
| Revenue | $5.0B | $7.2B |
| Revenue growth | 8.8% | −5.0% |
| Revenue growth a year, last 5 years | 8.9% | 7.4% |
| Gross margin | 30.3% | 28.1% |
| Operating margin | 11.1% | 9.9% |
| Net margin | 8.3% | 6.9% |
| Free cash flow | $461M | $535M |
| Free cash flow margin | 9.3% | 7.4% |
| Return on capital | 20.8% | 20.1% |
| Net debt to EBITDA | 0.2x | −0.3x |
| Dividends and buybacks | $390M | $474M |
| Change in diluted share count | −2.5% | 1.0% |
| Last close | $324.68 | $305.33 |
| P/E at the last close | 29.7× | 26.3× |
| Insider trades, last 12 months | sold $15.8 million | — |
| Piotroski F-score | 7 of 9 | 6 of 9 |
Amounts in each company's own currency, US$ unless marked (a foreign company may report in another), each company's latest fiscal year from its 10-K, or 20-F or 40-F for a foreign company. Growth rates compare with the year before; the five-year rate is the average a year. Free cash flow is cash from operations minus capital spending; return on capital is after-tax operating income over the money invested in the business; P/E is the last close over the latest earnings per share. Banks are measured differently (return on equity, efficiency ratio), so some rows apply to one company only.
Ten years
Revenue
US$ billions, fiscal years
Applied Industrial TechnologiesWatsco
Operating margin
Percent of revenue
Applied Industrial TechnologiesWatsco
Free cash flow
US$ billions. Cash from operations minus capital expenditure.
Applied Industrial TechnologiesWatsco
Source: the companies' Form 10-K filings, from SEC EDGAR, and the last close. For information only, not investment advice: the figures describe results, not which company is the better investment. The Filing Desk is not affiliated with either company. Full figures on the Applied Industrial Technologies and Watsco pages.