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WTS vs. XYL: Watts Water vs. Xylem Stock Comparison

How do Watts Water (WTS) and Xylem (XYL) 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

Watts Water (WTS) and Xylem (XYL) are both classified in the Industrial Machinery & Supplies & Components sub-industry within the broader Machinery industry, placing them in the closest GICS peer bucket.

Company profile comparison for Watts Water (WTS) and Xylem (XYL)
Profile ItemWTSXYL
NameWatts Water Technologies, Inc. Class A Common StockXylem Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryMachinery
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsIndustrial Machinery & Supplies & Components
Market Capitalization11.55 billion USD22.44 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateAugust 21, 1986October 13, 2011
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

WTS
XYL
GSPC
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Watts Water (WTS) vs. Xylem (XYL), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Watts Water (WTS) and Xylem (XYL). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Watts Water (WTS) and Xylem (XYL). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Total Return (1Y)33.85%-33.10%
Total Return (3Y, Annualized)25.59%2.29%
Total Return (5Y, Annualized)12.56%-4.47%

Risk Profile

Drawdown History

WTS
XYL
GSPC
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Watts Water (WTS) vs. Xylem (XYL), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Watts Water (WTS) and Xylem (XYL). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Volatility (1Y, Annualized)27.38%30.74%
Beta (5Y)1.110.96
Max Drawdown (5Y)-44.08%-44.89%
Avg. Volume (3M)225.08K2.60M

Risk-Adjusted Performance

Risk-Return Positioning

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WTS and XYL are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Sharpe Ratio (1Y)1.08-1.22
Sortino Ratio (1Y)1.78-1.48

Profitability

ROE (TTM)

Watts Water (WTS) at 20.91% sits in the top ROE quartile, while Xylem (XYL) at 9.76% is closer to the peer norm — stronger capital efficiency for WTS.

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%

XYL

Capital Goods industry group

9.76%

Max
40.55%
Q3
19.29%
Median
12.12%
XYL
9.76%
Q1
4.08%
Min
-17.12%
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Watts Water (WTS) at 16.00% retains a top-quartile share of revenue as profit, ahead of Xylem (XYL) at 11.94%, which keeps about the industry-typical share.

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%

XYL

Capital Goods industry group

11.94%

Max
27.47%
Q3
12.10%
XYL
11.94%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Watts Water (WTS) at 20.85% operates in the top operating margin quartile, ahead of Xylem (XYL) at 15.95%, which runs around its industry’s norm.

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%

XYL

Capital Goods industry group

15.95%

Max
36.60%
Q3
18.33%
XYL
15.95%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
ROE (TTM)20.91%9.76%
ROA (TTM)12.05%5.07%
Net Margin (TTM)16.00%11.94%
Operating Margin (TTM)20.85%15.95%
Gross Margin (TTM)49.09%39.32%

Growth

Revenue Growth

Both Watts Water (WTS) at 8.27% and Xylem (XYL) at 5.52% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Watts Water (WTS) vs. Xylem (XYL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Watts Water (WTS) at 17.03% and Xylem (XYL) at 7.40% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Watts Water (WTS) vs. Xylem (XYL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Revenue Growth (YoY)8.27%5.52%
Revenue Growth (3Y CAGR)7.20%17.84%
EPS Growth (YoY)17.03%7.40%
EPS Growth (3Y CAGR)10.78%25.99%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 keeps current ratio within its industry’s typical mid-range, while Xylem (XYL) at 1.39 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for XYL.

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

XYL

Capital Goods industry group

1.39

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
XYL
1.39
Min
0.36
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 keeps leverage in the lower industry quartile, while Xylem (XYL) at 0.29 runs a more typical debt-to-equity mix.

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

XYL

Capital Goods industry group

0.29

Max
2.33
Q3
1.12
Median
0.60
XYL
0.29
Q1
0.29
Min
0.00
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Current Ratio (MRQ)2.801.39
Debt / Equity (MRQ)0.080.29
Net Debt / EBITDA-0.401.18

Dividends

Dividend Yield (TTM)

Xylem (XYL) at 1.69% delivers top-quartile income for its industry, while Watts Water (WTS) at 0.66% pays a more typical yield — both are credible income propositions, XYL the richer one.

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%

XYL

Capital Goods industry group

1.69%

Max
2.66%
XYL
1.69%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watts Water (WTS) at 17.24% pays out a band-typical share of earnings, while Xylem (XYL) at 37.47% distributes more than its industry norm — less retained, thinner cover.

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%

XYL

Capital Goods industry group

37.47%

Max
67.39%
XYL
37.47%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
Dividend Yield (TTM)0.66%1.69%
Dividend Payout Ratio (TTM)17.24%37.47%

Valuation

P/E Ratio (TTM)

Both Watts Water (WTS) at 25.95 and Xylem (XYL) at 21.69 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

XYL

Capital Goods industry group

21.69

Max
59.38
Q3
35.92
Median
25.41
XYL
21.69
Q1
19.47
Min
3.03
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Xylem (XYL) at 2.48 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.

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

XYL

Capital Goods industry group

2.48

Max
7.54
Q3
3.76
XYL
2.48
Median
2.15
Q1
1.03
Min
0.03
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Watts Water (WTS) at 4.98 and Xylem (XYL) at 2.19 are valued close to their industries’ norm against book — neither stands out from peers.

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

XYL

Capital Goods industry group

2.19

Max
9.66
Q3
5.00
Median
3.12
XYL
2.19
Q1
1.81
Min
-1.08
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Watts Water (WTS) vs. Xylem (XYL): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Watts Water (WTS) and Xylem (XYL)
MetricWTSXYL
P/E Ratio (TTM)25.9521.69
P/S Ratio (TTM)4.142.48
P/B Ratio (MRQ)4.982.19
Free Cash Flow Yield (TTM)2.21%5.39%