AOS vs. XYL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AOS and XYL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
XYL’s market capitalization of 32.19 billion USD is significantly greater than AOS’s 9.65 billion USD, highlighting its more substantial market valuation.
With betas of 1.21 for AOS and 1.12 for XYL, both stocks show similar sensitivity to overall market movements.
| Symbol | AOS | XYL |
|---|---|---|
| Company Name | A. O. Smith Corporation | Xylem Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Industrial - Machinery |
| CEO | Kevin J. Wheeler | Matthew Francis Pine |
| Price | 67.92 USD | 132.28 USD |
| Market Cap | 9.65 billion USD | 32.19 billion USD |
| Beta | 1.21 | 1.12 |
| Exchange | NYSE | NYSE |
| IPO Date | September 30, 1983 | October 13, 2011 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AOS and XYL by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AOS
27.63%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Equity of 27.63% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
XYL
8.55%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
XYL’s Return on Equity of 8.55% is on par with the norm for the Industrial - Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AOS
22.35%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Invested Capital of 22.35% signifies a highly effective use of its capital to generate profits when compared to its peers.
XYL
5.90%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
XYL’s Return on Invested Capital of 5.90% is in line with the norm for the Industrial - Machinery industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AOS
13.74%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
AOS’s Net Profit Margin of 13.74% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
XYL
10.54%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
XYL’s Net Profit Margin of 10.54% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AOS
18.57%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
AOS’s Operating Profit Margin of 18.57% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
XYL
12.25%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
XYL’s Operating Profit Margin of 12.25% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AOS | XYL |
|---|---|---|
| Return on Equity (TTM) | 27.63% | 8.55% |
| Return on Assets (TTM) | 15.99% | 5.47% |
| Return on Invested Capital (TTM) | 22.35% | 5.90% |
| Net Profit Margin (TTM) | 13.74% | 10.54% |
| Operating Profit Margin (TTM) | 18.57% | 12.25% |
| Gross Profit Margin (TTM) | 38.02% | 37.54% |
Financial Strength
Current Ratio
AOS
1.61
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AOS’s Current Ratio of 1.61 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
XYL
1.89
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
XYL’s Current Ratio of 1.89 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AOS
0.16
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the Industrial - Machinery industry, AOS’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
XYL
0.20
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
XYL’s Debt-to-Equity Ratio of 0.20 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AOS
82.13
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
With an Interest Coverage Ratio of 82.13, AOS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.
XYL
36.31
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
With an Interest Coverage Ratio of 36.31, XYL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AOS | XYL |
|---|---|---|
| Current Ratio (TTM) | 1.61 | 1.89 |
| Quick Ratio (TTM) | 1.01 | 1.41 |
| Debt-to-Equity Ratio (TTM) | 0.16 | 0.20 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.13 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.16 | 0.62 |
| Interest Coverage Ratio (TTM) | 82.13 | 36.31 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AOS and XYL. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AOS
1.97%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.97%, AOS offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
XYL
1.15%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
XYL’s Dividend Yield of 1.15% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AOS
36.80%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AOS’s Dividend Payout Ratio of 36.80% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
XYL
39.74%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
XYL’s Dividend Payout Ratio of 39.74% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AOS | XYL |
|---|---|---|
| Dividend Yield (TTM) | 1.97% | 1.15% |
| Dividend Payout Ratio (TTM) | 36.80% | 39.74% |
Valuation
Price-to-Earnings Ratio
AOS
18.77
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
In the lower quartile for the Industrial - Machinery industry, AOS’s P/E Ratio of 18.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
XYL
35.49
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
A P/E Ratio of 35.49 places XYL in the upper quartile for the Industrial - Machinery industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AOS
2.13
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
XYL
2.82
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AOS
2.54
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AOS’s P/S Ratio of 2.54 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
XYL
3.74
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
XYL’s P/S Ratio of 3.74 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AOS
5.29
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AOS’s P/B Ratio of 5.29 is in the upper tier for the Industrial - Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
XYL
2.97
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
XYL’s P/B Ratio of 2.97 is within the conventional range for the Industrial - Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AOS | XYL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 18.77 | 35.49 |
| Forward PEG Ratio (TTM) | 2.13 | 2.82 |
| Price-to-Sales Ratio (P/S, TTM) | 2.54 | 3.74 |
| Price-to-Book Ratio (P/B, TTM) | 5.29 | 2.97 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.74 | 36.21 |
| EV-to-EBITDA (TTM) | 12.71 | 19.01 |
| EV-to-Sales (TTM) | 2.57 | 3.87 |