Hudson Technologies (NASDAQ:HDSN – Get Free Report) and Watsco (NYSE:WSO.B – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Profitability
This table compares Hudson Technologies and Watsco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hudson Technologies | 3.51% | 4.95% | 3.81% |
| Watsco | 6.53% | 14.40% | 10.17% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Hudson Technologies and Watsco, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hudson Technologies | 1 | 3 | 2 | 0 | 2.17 |
| Watsco | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
Hudson Technologies has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Watsco has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Institutional and Insider Ownership
71.3% of Hudson Technologies shares are owned by institutional investors. Comparatively, 0.1% of Watsco shares are owned by institutional investors. 1.9% of Hudson Technologies shares are owned by company insiders. Comparatively, 13.8% of Watsco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Hudson Technologies and Watsco”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hudson Technologies | $246.61 million | 0.96 | $16.67 million | $0.20 | 28.15 |
| Watsco | $7.24 billion | 1.76 | $496.99 million | $11.53 | 26.82 |
Watsco has higher revenue and earnings than Hudson Technologies. Watsco is trading at a lower price-to-earnings ratio than Hudson Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Watsco beats Hudson Technologies on 8 of the 14 factors compared between the two stocks.
About Hudson Technologies
Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.
About Watsco
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary 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. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.
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