TXT vs. WTS: Textron vs. Watts Water Stock Comparison
How do Textron (TXT) 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
Textron (TXT) and Watts Water (WTS) both fall under the Capital Goods industry group, but TXT is classified in Aerospace & Defense while WTS is classified in Machinery.
| Profile Item | TXT | WTS |
|---|---|---|
| Name | Textron Inc. | 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 | Aerospace & Defense | Machinery |
| GICS Sub-Industry | Aerospace & Defense | Industrial Machinery & Supplies & Components |
| Market Capitalization | 14.15 billion USD | 11.55 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | August 21, 1986 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | TXT | WTS |
|---|---|---|
| Total Return (1Y) | 3.94% | 33.85% |
| Total Return (3Y, Annualized) | 4.49% | 25.59% |
| Total Return (5Y, Annualized) | 2.30% | 12.56% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | TXT | WTS |
|---|---|---|
| Volatility (1Y, Annualized) | 29.18% | 27.38% |
| Beta (5Y) | 0.87 | 1.11 |
| Max Drawdown (5Y) | -37.33% | -44.08% |
| Avg. Volume (3M) | 1.72M | 225.08K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | TXT | WTS |
|---|---|---|
| Sharpe Ratio (1Y) | -0.01 | 1.08 |
| Sortino Ratio (1Y) | -0.02 | 1.78 |
Profitability
ROE (TTM)
Watts Water (WTS) at 20.91% sits in the top ROE quartile, while Textron (TXT) at 12.48% is closer to the peer norm — stronger capital efficiency for WTS.
TXT
Capital Goods industry group
12.48%
- Max
- 40.55%
- Q3
- 19.29%
- TXT
- 12.48%
- Median
- 12.12%
- Q1
- 4.08%
- 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 Textron (TXT) at 6.30%, which keeps about the industry-typical share.
TXT
Capital Goods industry group
6.30%
- Max
- 27.47%
- Q3
- 12.10%
- TXT
- 6.30%
- Median
- 6.30%
- 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 Textron (TXT) at 9.33%, which runs around its industry’s norm.
TXT
Capital Goods industry group
9.33%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- TXT
- 9.33%
- 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 | TXT | WTS |
|---|---|---|
| ROE (TTM) | 12.48% | 20.91% |
| ROA (TTM) | 4.51% | 12.05% |
| Net Margin (TTM) | 6.30% | 16.00% |
| Operating Margin (TTM) | 9.33% | 20.85% |
| Gross Margin (TTM) | 17.53% | 49.09% |
Growth
Revenue Growth
Both Textron (TXT) at 8.01% and Watts Water (WTS) at 8.27% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Textron (TXT) at 18.02% and Watts Water (WTS) at 17.03% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | TXT | WTS |
|---|---|---|
| Revenue Growth (YoY) | 8.01% | 8.27% |
| Revenue Growth (3Y CAGR) | 4.77% | 7.20% |
| EPS Growth (YoY) | 18.02% | 17.03% |
| EPS Growth (3Y CAGR) | 8.42% | 10.78% |
Financial Strength
Current Ratio (MRQ)
Both Textron (TXT) at 1.80 and Watts Water (WTS) at 2.80 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
TXT
Capital Goods industry group
1.80
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- TXT
- 1.80
- 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 Textron (TXT) at 0.52 runs a more typical debt-to-equity mix.
TXT
Capital Goods industry group
0.52
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TXT
- 0.52
- 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 | TXT | WTS |
|---|---|---|
| Current Ratio (MRQ) | 1.80 | 2.80 |
| Debt / Equity (MRQ) | 0.52 | 0.08 |
| Net Debt / EBITDA | 1.54 | -0.40 |
Dividends
Dividend Yield (TTM)
Both Textron (TXT) at 0.09% and Watts Water (WTS) at 0.66% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
TXT
Capital Goods industry group
0.09%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- TXT
- 0.09%
- 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)
Both Textron (TXT) at 1.44% and Watts Water (WTS) at 17.24% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.
TXT
Capital Goods industry group
1.44%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- TXT
- 1.44%
- 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 | TXT | WTS |
|---|---|---|
| Dividend Yield (TTM) | 0.09% | 0.66% |
| Dividend Payout Ratio (TTM) | 1.44% | 17.24% |
Valuation
P/E Ratio (TTM)
Textron (TXT) at 15.03 sits in the cheaper P/E ratio quartile, while Watts Water (WTS) at 25.95 is closer to its industry’s usual earnings multiple — a discount for TXT, though growth and earnings durability still matter.
TXT
Capital Goods industry group
15.03
- Max
- 59.38
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- TXT
- 15.03
- 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)
Textron (TXT) at 0.92 looks cheap on sales in the lower P/S ratio quartile, while Watts Water (WTS) at 4.14 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
TXT
Capital Goods industry group
0.92
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- TXT
- 0.92
- 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)
Textron (TXT) at 1.74 sits in the lower P/B ratio quartile against book while Watts Water (WTS) at 4.98 is valued near its industry’s middle — TXT is cheaper on assets, though weigh it against ROE and asset quality.
TXT
Capital Goods industry group
1.74
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- TXT
- 1.74
- 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 | TXT | WTS |
|---|---|---|
| P/E Ratio (TTM) | 15.03 | 25.95 |
| P/S Ratio (TTM) | 0.92 | 4.14 |
| P/B Ratio (MRQ) | 1.74 | 4.98 |
| Free Cash Flow Yield (TTM) | 5.35% | 2.21% |