Which Is a Better Investment, Advanced Drainage Systems, Inc. or Zurn Elkay Water Solutions Corporation Stock?

By Jenna Brashear
October 26, 2026
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Sifting through countless of stocks in the Building Products industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Advanced Drainage Systems, Inc. or Zurn Elkay Water Solutions Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in the United States, Canada, and internationally. The company operates through Stormwater and Wastewater segments. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater; septic tanks and accessories; combined treatment and dispersal systems, including AeroFin, advanced enviro-septic, enviro-septic, and advanced treatment leachfield; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. It also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, the company provides PVC hubs, rubber sleeves, and stainless-steel bands; and channel drains, catch basins, grates, access boxes, and accessories engineered to capture, convey, and disperse stormwater. It offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. was incorporated in 1966 and is headquartered in Hilliard, Ohio.

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water dispensing and filtration products, such as filtered bottle filling stations, water fountains and water dispensers, and filtered faucets under the Elkay and Halsey Taylor brand names; filtered units including water filters; and water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, and thermostatic mixing valves under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, and chemical drainage systems; and oil and grease interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn, Green Turtle, and Wade brands. In addition, it offers sensor operated flush valves under the Aquaflush, AquaSense, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; flush valves and faucets under the Hydro X Power brands; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel, quartz, fireclay-ceramic, and cast iron sinks under the Elkay brand name; stainless steel sinks and plumbing fixtures under the Just brand; restroom partition systems and lockers under the Hadrian brand name; and hand dryers. Further, the company offers its products to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was founded in 1900 and is headquartered in Milwaukee, Wisconsin.

Latest Building Products and Advanced Drainage Systems, Inc., Zurn Elkay Water Solutions Corporation Stock News

As of October 23, 2026, Advanced Drainage Systems, Inc. had a $9.8 billion market capitalization, compared to the Building Products median of $5.1 million. Advanced Drainage Systems, Inc.’s stock is down 9% in 2026, up 3.2% in the previous five trading days and down 6.56% in the past year.

Currently, Advanced Drainage Systems, Inc.’s price-earnings ratio is 22.3. Advanced Drainage Systems, Inc.’s trailing 12-month revenue is $3.2 billion with a 14.0% net profit margin. Year-over-year quarterly sales growth most recently was 20.6%. Analysts expect adjusted earnings to reach $6.290 per share for the current fiscal year. Advanced Drainage Systems, Inc. currently has a 0.6% dividend yield.

As of October 23, 2026, Zurn Elkay Water Solutions Corporation had a $8.1 billion market cap, putting it in the 75th percentile of all stocks. Zurn Elkay Water Solutions Corporation’s stock is up 6.7% in 2026, up 5.3% in the previous five trading days and up 4.5% in the past year.

Currently, Zurn Elkay Water Solutions Corporation’s price-earnings ratio is 30.2. Zurn Elkay Water Solutions Corporation’s trailing 12-month revenue is $1.8 billion with a 15.5% net profit margin. Year-over-year quarterly sales growth most recently was 10.5%. Analysts expect adjusted earnings to reach $1.833 per share for the current fiscal year. Zurn Elkay Water Solutions Corporation currently has a 0.9% dividend yield.

How We Compare Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation’s stock grades to see how they measure up against one another.

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Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation’s Quality Grades

Company Ticker Quality
Advanced Drainage Systems, Inc. WMS A
Zurn Elkay Water Solutions Corporation ZWS A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Advanced Drainage Systems, Inc. has a Quality Score of 84, which is Very Strong. Zurn Elkay Water Solutions Corporation has a Quality Score of 94, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation’s Momentum Grades

Company Ticker Momentum
Advanced Drainage Systems, Inc. WMS D
Zurn Elkay Water Solutions Corporation ZWS C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Advanced Drainage Systems, Inc. has a Momentum Score of 39, which is Weak. Zurn Elkay Water Solutions Corporation has a Momentum Score of 53, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither Advanced Drainage Systems, Inc. or Zurn Elkay Water Solutions Corporation has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Advanced Drainage Systems, Inc. or Zurn Elkay Water Solutions Corporation is the better investment when it comes to momentum.

Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Advanced Drainage Systems, Inc. WMS C
Zurn Elkay Water Solutions Corporation ZWS B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Advanced Drainage Systems, Inc. has a Earnings Estimate Score of 60, which is Neutral. Zurn Elkay Water Solutions Corporation has a Earnings Estimate Score of 74, which is Positive.

The Earnings Estimate Revisions Grade Winner: Zurn Elkay Water Solutions Corporation

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Zurn Elkay Water Solutions Corporation has a better Earnings Estimate Revisions Grade than Advanced Drainage Systems, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Zurn Elkay Water Solutions Corporation could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation Grades

In addition to Estimate Revisions, Momentum and Quality, A+ Investor also provides grades for Value and Growth.

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Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Advanced Drainage Systems, Inc. or Zurn Elkay Water Solutions Corporation Stock?

Overall, Advanced Drainage Systems, Inc. stock has a Momentum Score of 39, Estimate Revisions Score of 60 and Quality Score of 84.

Zurn Elkay Water Solutions Corporation stock has a Momentum Score of 53, Estimate Revisions Score of 74 and Quality Score of 94.

Comparing Advanced Drainage Systems, Inc. and Zurn Elkay Water Solutions Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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