RRX vs. WTS: Regal Rexnord vs. Watts Water Stock Comparison
How do Regal Rexnord (RRX) and Watts Water (WTS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Regal Rexnord (RRX) and Watts Water (WTS) both fall under the Capital Goods industry group, but RRX is classified in Electrical Equipment while WTS is classified in Machinery.
| Profile Item | RRX | WTS |
|---|---|---|
| Name | Regal Rexnord Corporation | Watts Water Technologies, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Electrical Equipment | Machinery |
| GICS Sub-Industry | Electrical Components & Equipment | Industrial Machinery & Supplies & Components |
| Market Capitalization | 11.26 billion USD | 11.55 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | August 21, 1986 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | RRX | WTS |
|---|---|---|
| Total Return (1Y) | 33.67% | 33.85% |
| Total Return (3Y, Annualized) | 20.16% | 25.59% |
| Total Return (5Y, Annualized) | 2.72% | 12.56% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | RRX | WTS |
|---|---|---|
| Volatility (1Y, Annualized) | 53.85% | 27.38% |
| Beta (5Y) | 1.04 | 1.11 |
| Max Drawdown (5Y) | -48.11% | -44.08% |
| Avg. Volume (3M) | 1.21M | 225.08K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | RRX | WTS |
|---|---|---|
| Sharpe Ratio (1Y) | 0.55 | 1.08 |
| Sortino Ratio (1Y) | 0.79 | 1.78 |
Profitability
ROE (TTM)
Watts Water (WTS) at 20.91% sits in the top ROE quartile, while Regal Rexnord (RRX) at 3.41% is in the bottom quartile, showing a clear gap in returns on equity.
RRX
Capital Goods industry group
3.41%
- Max
- 40.55%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- RRX
- 3.41%
- Min
- -17.12%
WTS
Capital Goods industry group
20.91%
- Max
- 40.55%
- WTS
- 20.91%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Watts Water (WTS) at 16.00% retains a top-quartile share of revenue as profit, ahead of Regal Rexnord (RRX) at 3.77%, which keeps about the industry-typical share.
RRX
Capital Goods industry group
3.77%
- Max
- 27.47%
- Q3
- 12.10%
- Median
- 6.30%
- RRX
- 3.77%
- Q1
- 1.40%
- Min
- -12.89%
WTS
Capital Goods industry group
16.00%
- Max
- 27.47%
- WTS
- 16.00%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Watts Water (WTS) at 20.85% operates in the top operating margin quartile, ahead of Regal Rexnord (RRX) at 12.10%, which runs around its industry’s norm.
RRX
Capital Goods industry group
12.10%
- Max
- 36.60%
- Q3
- 18.33%
- RRX
- 12.10%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
WTS
Capital Goods industry group
20.85%
- Max
- 36.60%
- WTS
- 20.85%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | RRX | WTS |
|---|---|---|
| ROE (TTM) | 3.41% | 20.91% |
| ROA (TTM) | 3.20% | 12.05% |
| Net Margin (TTM) | 3.77% | 16.00% |
| Operating Margin (TTM) | 12.10% | 20.85% |
| Gross Margin (TTM) | 37.24% | 49.09% |
Growth
Revenue Growth
Watts Water (WTS) at 8.27% is around its peer norm for revenue growth, while Regal Rexnord (RRX) at -1.65% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Regal Rexnord (RRX) at 42.86% sits in the top EPS growth quartile, while Watts Water (WTS) at 17.03% is closer to the peer norm — faster per-share earnings growth for RRX.
Growth Metrics
| Metric | RRX | WTS |
|---|---|---|
| Revenue Growth (YoY) | -1.65% | 8.27% |
| Revenue Growth (3Y CAGR) | 4.38% | 7.20% |
| EPS Growth (YoY) | 42.86% | 17.03% |
| EPS Growth (3Y CAGR) | -16.79% | 10.78% |
Financial Strength
Current Ratio (MRQ)
Both Regal Rexnord (RRX) at 2.22 and Watts Water (WTS) at 2.80 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
RRX
Capital Goods industry group
2.22
- Max
- 5.22
- Q3
- 2.95
- RRX
- 2.22
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
WTS
Capital Goods industry group
2.80
- Max
- 5.22
- Q3
- 2.95
- WTS
- 2.80
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Watts Water (WTS) at 0.08 keeps leverage in the lower industry quartile, while Regal Rexnord (RRX) at 0.67 runs a more typical debt-to-equity mix.
RRX
Capital Goods industry group
0.67
- Max
- 2.33
- Q3
- 1.12
- RRX
- 0.67
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
WTS
Capital Goods industry group
0.08
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- Q1
- 0.29
- WTS
- 0.08
- Min
- 0.00
Financial Strength Metrics
| Metric | RRX | WTS |
|---|---|---|
| Current Ratio (MRQ) | 2.22 | 2.80 |
| Debt / Equity (MRQ) | 0.67 | 0.08 |
| Net Debt / EBITDA | 3.47 | -0.40 |
Dividends
Dividend Yield (TTM)
Both Regal Rexnord (RRX) at 0.87% and Watts Water (WTS) at 0.66% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
RRX
Capital Goods industry group
0.87%
- Max
- 2.66%
- Q3
- 1.14%
- RRX
- 0.87%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
WTS
Capital Goods industry group
0.66%
- Max
- 2.66%
- Q3
- 1.14%
- WTS
- 0.66%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Watts Water (WTS) at 17.24% pays out a band-typical share of earnings, while Regal Rexnord (RRX) at 40.35% distributes more than its industry norm — less retained, thinner cover.
RRX
Capital Goods industry group
40.35%
- Max
- 67.39%
- RRX
- 40.35%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
WTS
Capital Goods industry group
17.24%
- Max
- 67.39%
- Q3
- 28.02%
- WTS
- 17.24%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | RRX | WTS |
|---|---|---|
| Dividend Yield (TTM) | 0.87% | 0.66% |
| Dividend Payout Ratio (TTM) | 40.35% | 17.24% |
Valuation
P/E Ratio (TTM)
Watts Water (WTS) at 25.95 is near its industry’s usual P/E ratio, while Regal Rexnord (RRX) at 48.72 sits in the richer quartile — RRX needs stronger growth or earnings quality to justify the premium.
RRX
Capital Goods industry group
48.72
- Max
- 59.38
- RRX
- 48.72
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
WTS
Capital Goods industry group
25.95
- Max
- 59.38
- Q3
- 35.92
- WTS
- 25.95
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
Regal Rexnord (RRX) at 1.83 is priced about in line with its industry on P/S ratio, while Watts Water (WTS) at 4.14 sits in the pricier quartile — WTS costs more per dollar of sales.
RRX
Capital Goods industry group
1.83
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- RRX
- 1.83
- Q1
- 1.03
- Min
- 0.03
WTS
Capital Goods industry group
4.14
- Max
- 7.54
- WTS
- 4.14
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
Regal Rexnord (RRX) at 1.64 sits in the lower P/B ratio quartile against book while Watts Water (WTS) at 4.98 is valued near its industry’s middle — RRX is cheaper on assets, though weigh it against ROE and asset quality.
RRX
Capital Goods industry group
1.64
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- RRX
- 1.64
- Min
- -1.08
WTS
Capital Goods industry group
4.98
- Max
- 9.66
- Q3
- 5.00
- WTS
- 4.98
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Valuation Metrics
| Metric | RRX | WTS |
|---|---|---|
| P/E Ratio (TTM) | 48.72 | 25.95 |
| P/S Ratio (TTM) | 1.83 | 4.14 |
| P/B Ratio (MRQ) | 1.64 | 4.98 |
| Free Cash Flow Yield (TTM) | 3.88% | 2.21% |