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.
| Profile Item | WTS | XYL |
|---|---|---|
| Name | Watts Water Technologies, Inc. Class A Common Stock | Xylem Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Machinery | Machinery |
| GICS Sub-Industry | Industrial Machinery & Supplies & Components | Industrial Machinery & Supplies & Components |
| Market Capitalization | 11.55 billion USD | 22.44 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | August 21, 1986 | October 13, 2011 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | WTS | XYL |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | WTS | XYL |
|---|---|---|
| Volatility (1Y, Annualized) | 27.38% | 30.74% |
| Beta (5Y) | 1.11 | 0.96 |
| Max Drawdown (5Y) | -44.08% | -44.89% |
| Avg. Volume (3M) | 225.08K | 2.60M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | WTS | XYL |
|---|---|---|
| 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%
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%
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%
Profitability Metrics
| Metric | WTS | XYL |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | WTS | XYL |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | WTS | XYL |
|---|---|---|
| Current Ratio (MRQ) | 2.80 | 1.39 |
| Debt / Equity (MRQ) | 0.08 | 0.29 |
| Net Debt / EBITDA | -0.40 | 1.18 |
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%
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%
Dividend Metrics
| Metric | WTS | XYL |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | WTS | XYL |
|---|---|---|
| P/E Ratio (TTM) | 25.95 | 21.69 |
| P/S Ratio (TTM) | 4.14 | 2.48 |
| P/B Ratio (MRQ) | 4.98 | 2.19 |
| Free Cash Flow Yield (TTM) | 2.21% | 5.39% |