Regal Rexnord (RRX) vs Watsco (WSO)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
Regal Rexnord (RRX) has outperformed Watsco (WSO) over the past year, gaining 14.0% versus a loss of 28.7%. Over five years, RRX leads with a +13.8% price change compared with -0.9% for WSO. Watsco is the larger company by market cap ($11.76 billion vs $10.67 billion), about 1.1 times the size, while Regal Rexnord is growing revenue faster (-1.6% vs -5.0%).
On valuation, Regal Rexnord trades at a lower forward P/E (12.3x vs 21.4x for Watsco). Watsco offers the higher dividend yield (4.31% vs 0.87%). Watsco converts more of its revenue into profit, with a net margin of 6.9% versus 4.7%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | RRX | WSO |
|---|---|---|
| Share price | $160.34 | $285.16 |
| Market cap | $10.67B | $11.76B |
| 1-day change | -2.33% | +0.89% |
| YTD return | +17.00% | -16.12% |
| 1-year return | +14.04% | -28.68% |
| 5-year return | +13.81% | -0.93% |
| P/E ratio (TTM) | 32.99 | 24.44 |
| Forward P/E | 12.34 | 21.37 |
| EPS (TTM) | $4.86 | $11.67 |
| Dividend yield | 0.87% | 4.31% |
| Annual dividend | $1.40 | $12.30 |
| Revenue (latest FY) | $5.93B | $7.24B |
| Revenue growth (YoY) | -1.65% | -4.98% |
| Net income (latest FY) | $279.50M | $496.99M |
| Gross margin | 37.37% | 28.05% |
| Operating margin | 11.47% | 9.95% |
| Net margin | 4.71% | 6.87% |
| 52-week high | $247.80 | $459.00 |
| 52-week low | $127.96 | $279.04 |
| Distance from 52-week high | -35.29% | -37.87% |
| Analyst consensus | strong_buy | hold |
| Avg. price target upside | +50.93% | +31.82% |
| Average volume | 1.20M | 499.69K |
| Shares outstanding | 66.57M | 35.59M |
| Employees | 28,700 | 6,950 |
| Sector | Industrials | Consumer Discretionary |
| Industry | Industrial Machinery/Components | Industrial Machinery/Components |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- RRX has outperformed WSO by 42.7 percentage points over the past year.
- Regal Rexnord trades at a higher earnings multiple (33.0x vs 24.4x trailing P/E).
- Watsco offers a meaningfully higher dividend yield (4.31% vs 0.87%).
- The two companies sit in different sectors: Regal Rexnord in Industrials and Watsco in Consumer Discretionary.
About Regal Rexnord
RRX stock →Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions.
Industrials · Industrial Machinery/Components · 28,700 employees
About Watsco
WSO stock →Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
Consumer Discretionary · Industrial Machinery/Components · 6,950 employees
RRX vs WSO FAQ
Which is bigger, Regal Rexnord or Watsco?
Watsco (WSO) is larger, with a market capitalization of $11.76B compared with $10.67B for Regal Rexnord (RRX).
Which stock has performed better over the past year, RRX or WSO?
RRX returned +14.04% over the past 12 months, compared with -28.68% for WSO (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, RRX or WSO?
WSO has the lower trailing P/E at 24.4, versus 33.0 for RRX. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Regal Rexnord or Watsco?
Watsco has the higher yield at 4.31%, compared with 0.87% for Regal Rexnord.
Are Regal Rexnord and Watsco in the same industry?
Yes. Both are classified in the Industrial Machinery/Components industry within the Industrials sector.