Comparing Watsco (NYSE:WSO) and Hudson Technologies (NASDAQ:HDSN)

Watsco (NYSE:WSO) and Hudson Technologies (NASDAQ:HDSN) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Institutional & Insider Ownership

89.7% of Watsco shares are owned by institutional investors. Comparatively, 71.3% of Hudson Technologies shares are owned by institutional investors. 12.9% of Watsco shares are owned by insiders. Comparatively, 1.9% of Hudson Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Watsco and Hudson Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Watsco	$7.24 billion	1.61	$496.99 million	$11.53	24.44
Hudson Technologies	$256.92 million	0.84	$16.67 million	$0.20	25.57

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.

Volatility & Risk

Watsco has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Hudson Technologies has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Watsco and Hudson Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Watsco	1	8	2	0	2.09
Hudson Technologies	1	2	2	0	2.20

Watsco currently has a consensus price target of $395.50, indicating a potential upside of 40.33%. Hudson Technologies has a consensus price target of $8.62, indicating a potential upside of 68.62%. Given Hudson Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Hudson Technologies is more favorable than Watsco.

Profitability

This table compares Watsco and Hudson Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Watsco	6.53%	14.40%	10.17%
Hudson Technologies	3.51%	4.95%	3.81%

Summary

Watsco beats Hudson Technologies on 10 of the 13 factors compared between the two stocks.

About Watsco

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company 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. It 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. The company 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.

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.