TXT vs. XYL: A Head-to-Head Stock Comparison

Updated on August 23, 2025

Here’s a clear look at TXT and XYL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	TXT	XYL
Company Name	Textron Inc.	Xylem Inc.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Machinery
Market Capitalization	14.13 billion USD	34.53 billion USD
Exchange	NYSE	NYSE
Listing Date	February 21, 1973	October 13, 2011
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of TXT 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.

TXT vs. XYL: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	TXT	XYL
5-Day Price Return	-1.28%	0.02%
13-Week Price Return	3.76%	10.84%
26-Week Price Return	8.47%	8.22%
52-Week Price Return	-10.53%	5.57%
Month-to-Date Return	1.95%	-1.90%
Year-to-Date Return	3.66%	22.28%
10-Day Avg. Volume	1.29M	1.03M
3-Month Avg. Volume	1.55M	1.35M
3-Month Volatility	23.66%	24.81%
Beta	1.14	1.14

Profitability

Return on Equity (TTM)

TXT

11.31%

Aerospace & Defense Industry

Max: 43.89%
Q3: 22.42%
Median: 12.50%
Q1: 5.21%
Min: -6.24%

TXT’s Return on Equity of 11.31% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

XYL

8.70%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

XYL’s Return on Equity of 8.70% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

TXT vs. XYL: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Net Profit Margin (TTM)

TXT

5.80%

Aerospace & Defense Industry

Max: 14.54%
Q3: 8.08%
Median: 6.17%
Q1: 2.49%
Min: -1.63%

TXT’s Net Profit Margin of 5.80% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

XYL

10.74%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

XYL’s Net Profit Margin of 10.74% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

TXT vs. XYL: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Operating Profit Margin (TTM)

TXT

5.50%

Aerospace & Defense Industry

Max: 16.63%
Q3: 10.38%
Median: 8.29%
Q1: 6.21%
Min: 0.95%

TXT’s Operating Profit Margin of 5.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

XYL

11.81%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

XYL’s Operating Profit Margin of 11.81% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

TXT vs. XYL: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Profitability at a Glance

Symbol	TXT	XYL
Return on Equity (TTM)	11.31%	8.70%
Return on Assets (TTM)	4.85%	5.66%
Net Profit Margin (TTM)	5.80%	10.74%
Operating Profit Margin (TTM)	5.50%	11.81%
Gross Profit Margin (TTM)	19.73%	37.81%

Financial Strength

Current Ratio (MRQ)

TXT

1.70

Aerospace & Defense Industry

Max: 3.09
Q3: 1.98
Median: 1.23
Q1: 1.03
Min: 0.02

TXT’s Current Ratio of 1.70 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

XYL

1.90

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

XYL’s Current Ratio of 1.90 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

TXT vs. XYL: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

TXT

0.50

Aerospace & Defense Industry

Max: 1.70
Q3: 1.04
Median: 0.68
Q1: 0.41
Min: 0.00

TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

XYL

0.18

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
Min: 0.00

Falling into the lower quartile for the Machinery industry, XYL’s Debt-to-Equity Ratio of 0.18 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

TXT vs. XYL: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

TXT

10.72

Aerospace & Defense Industry

Max: 36.57
Q3: 19.90
Median: 7.04
Q1: 2.40
Min: -7.63

TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

XYL

55.35

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
Q1: 7.97
Min: -1.43

XYL’s Interest Coverage Ratio of 55.35 is in the upper quartile for the Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

TXT vs. XYL: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Financial Strength at a Glance

Symbol	TXT	XYL
Current Ratio (MRQ)	1.70	1.90
Quick Ratio (MRQ)	0.71	1.31
Debt-to-Equity Ratio (MRQ)	0.50	0.18
Interest Coverage Ratio (TTM)	10.72	55.35

Growth

Revenue Growth

TXT vs. XYL: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

TXT vs. XYL: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

TXT

0.08%

Aerospace & Defense Industry

Max: 2.03%
Q3: 1.22%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

TXT’s Dividend Yield of 0.08% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

XYL

1.05%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

XYL’s Dividend Yield of 1.05% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TXT vs. XYL: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

TXT

1.85%

Aerospace & Defense Industry

Max: 83.87%
Q3: 49.90%
Median: 16.48%
Q1: 0.00%
Min: 0.00%

TXT’s Dividend Payout Ratio of 1.85% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

XYL

39.55%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
Min: 0.00%

XYL’s Dividend Payout Ratio of 39.55% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TXT vs. XYL: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend at a Glance

Symbol	TXT	XYL
Dividend Yield (TTM)	0.08%	1.05%
Dividend Payout Ratio (TTM)	1.85%	39.55%

Valuation

Price-to-Earnings Ratio (TTM)

TXT

17.34

Aerospace & Defense Industry

Max: 65.97
Q3: 54.11
Median: 34.53
Q1: 23.66
Min: 0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.34 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

XYL

37.52

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

A P/E Ratio of 37.52 places XYL in the upper quartile for the Machinery industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

TXT vs. XYL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

TXT

1.01

Aerospace & Defense Industry

Max: 8.07
Q3: 4.49
Median: 2.42
Q1: 1.39
Min: 0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.01 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

XYL

4.03

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

XYL’s P/S Ratio of 4.03 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

TXT vs. XYL: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

TXT

1.95

Aerospace & Defense Industry

Max: 13.67
Q3: 7.92
Median: 4.65
Q1: 2.68
Min: 0.82

TXT’s P/B Ratio of 1.95 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

XYL

2.84

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

XYL’s P/B Ratio of 2.84 is within the conventional range for the 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.

TXT vs. XYL: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Valuation at a Glance

Symbol	TXT	XYL
Price-to-Earnings Ratio (TTM)	17.34	37.52
Price-to-Sales Ratio (TTM)	1.01	4.03
Price-to-Book Ratio (MRQ)	1.95	2.84
Price-to-Free Cash Flow Ratio (TTM)	19.15	40.41