Sifting through countless of stocks in the Building Products industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in AAON, Inc., Watsco or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how AAON, Inc., Watsco and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About AAON, Inc., Watsco and Inc.

AAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, and other commercial industries. It sells its products through a network of independent manufacturer representative organizations and internal sales force, as well as online. AAON, Inc. was incorporated in 1987 and is headquartered in Tulsa, Oklahoma.

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. The company also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Latest Building Products and AAON, Inc., Watsco, Inc. Stock News

As of September 4, 2026, AAON, Inc. had a $6.5 billion market capitalization, compared to the Building Products median of $5.1 million. AAON, Inc.’s stock is up 4.1% in 2026, up 4.7% in the previous five trading days and down 2.47% in the past year.

Currently, AAON, Inc.’s price-earnings ratio is 41.7. AAON, Inc.’s trailing 12-month revenue is $1.9 billion with a 8.2% net profit margin. Year-over-year quarterly sales growth most recently was 101.2%. Analysts expect adjusted earnings to reach $2.368 per share for the current fiscal year. AAON, Inc. currently has a 0.5% dividend yield.

As of September 4, 2026, Watsco, Inc. had a $12.2 billion market cap, putting it in the 80th percentile of all stocks. Watsco, Inc.’s stock is down 6.5% in 2026, up 1.4% in the previous five trading days and down 21.88% in the past year.

Currently, Watsco, Inc.’s price-earnings ratio is 27.0. Watsco, Inc.’s trailing 12-month revenue is $7.3 billion with a 6.5% net profit margin. Year-over-year quarterly sales growth most recently was 2.1%. Analysts expect adjusted earnings to reach $12.143 per share for the current fiscal year. Watsco, Inc. currently has a 4.2% dividend yield.

How We Compare AAON, Inc., Watsco and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at AAON, Inc., Watsco and Inc.’s stock grades to see how they measure up against one another.

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AAON, Inc., Watsco and Inc.’s Quality Grades

Company	Ticker	Quality
AAON, Inc.	AAON	C
Watsco, Inc.	WSO	B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

AAON, Inc. has a Quality Score of 51, which is Average. Watsco, Inc. has a Quality Score of 79, which is Strong.

The Quality Grade Winner: Watsco, Inc.

As you can clearly see from the Quality Grade breakdown above, Watsco, Inc. has a better overall quality grade than AAON, Inc.. For investors who are looking for companies with higher quality than others in the same industry, Watsco, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

AAON, Inc., Watsco and Inc.’s Momentum Grades

Company	Ticker	Momentum
AAON, Inc.	AAON	D
Watsco, Inc.	WSO	D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

AAON, Inc. has a Momentum Score of 25, which is Weak. Watsco, Inc. has a Momentum Score of 21, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither AAON, Inc., Watsco or Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if AAON, Inc., Watsco or Inc. is the better investment when it comes to momentum.

AAON, Inc., Watsco and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
AAON, Inc.	AAON	A
Watsco, Inc.	WSO	D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

AAON, Inc. has a Earnings Estimate Score of 81, which is Very Positive. Watsco, Inc. has a Earnings Estimate Score of 32, which is Negative.

The Earnings Estimate Revisions Grade Winner: AAON, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, AAON, Inc. has a better Earnings Estimate Revisions Grade than Watsco, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, AAON, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other AAON, Inc., Watsco and Inc. Grades

In addition to Quality, Estimate Revisions and Momentum, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether AAON, Inc., Watsco and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, AAON, Inc., Watsco or Inc. Stock?

Overall, AAON, Inc. stock has a Momentum Score of 25, Estimate Revisions Score of 81 and Quality Score of 51.

Watsco, Inc. stock has a Momentum Score of 21, Estimate Revisions Score of 32 and Quality Score of 79.

Comparing AAON, Inc., Watsco and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.