Sifting through countless of stocks in the Machinery 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 Xylem Inc., Watts Water Technologies or Inc. 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 Xylem Inc., Watts Water Technologies and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Xylem Inc., Watts Water Technologies and Inc.

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands. It also provides smart meters, network communication devices, data analytics, test instruments, controls, sensor devices, software and managed services, critical infrastructure services, cloud-based analytics, and remote monitoring and data management under the Ebro, Sensus, Sentec, Smith Blair, WTW, YSI, and Xylem Vue brands. In addition, the company offers preventative maintenance services, rapid response mobile services, digitally enabled/outsourced solutions, process and wastewater treatment systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, continuous deionization, and mobile dewatering equipment and rental services; and municipal services comprising odor and corrosion control services, as well as condition assessment and asset management, and pressure monitoring solutions under the Grindex, Mar Cor, and Godwin brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in July 2011. The company was incorporated in 2011 and is headquartered in Washington, District Of Columbia.

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

Latest Machinery and Xylem Inc., Watts Water Technologies, Inc. Stock News

As of April 23, 2026, Xylem Inc. had a $29.6 billion market capitalization, compared to the Machinery median of $3.9 million. Xylem Inc.’s stock is down 10.6% in 2026, up 0.5% in the previous five trading days and up 8.94% in the past year.

Currently, Xylem Inc.’s price-earnings ratio is 31.0. Xylem Inc.’s trailing 12-month revenue is $9.0 billion with a 10.6% net profit margin. Year-over-year quarterly sales growth most recently was 6.3%. Analysts expect adjusted earnings to reach $5.488 per share for the current fiscal year. Xylem Inc. currently has a 1.4% dividend yield.

As of April 23, 2026, Watts Water Technologies, Inc. had a $10.1 billion market cap, putting it in the 78th percentile of all stocks. Watts Water Technologies, Inc.’s stock is up 9.6% in 2026, up 0.1% in the previous five trading days and up 48.58% in the past year.

Currently, Watts Water Technologies, Inc.’s price-earnings ratio is 29.8. Watts Water Technologies, Inc.’s trailing 12-month revenue is $2.4 billion with a 14.0% net profit margin. Year-over-year quarterly sales growth most recently was 15.7%. Analysts expect adjusted earnings to reach $11.732 per share for the current fiscal year. Watts Water Technologies, Inc. currently has a 0.7% dividend yield.

How We Compare Xylem Inc., Watts Water Technologies and Inc. 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 Xylem Inc., Watts Water Technologies and Inc.’s stock grades to see how they measure up against one another.

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Xylem Inc., Watts Water Technologies and Inc. Growth Grades

Company	Ticker	Growth
Xylem Inc.	XYL	A
Watts Water Technologies, Inc.	WTS	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Xylem Inc. has a Growth Score of 89, which is Very Strong. Watts Water Technologies, Inc. has a Growth Score of 100, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Xylem Inc., Watts Water Technologies and Inc. have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Xylem Inc., Watts Water Technologies and Inc.’s Quality Grades

Company	Ticker	Quality
Xylem Inc.	XYL	A
Watts Water Technologies, Inc.	WTS	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.

Xylem Inc. has a Quality Score of 81, which is Very Strong. Watts Water Technologies, Inc. has a Quality Score of 88, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Xylem Inc., Watts Water Technologies and Inc. 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.

Xylem Inc., Watts Water Technologies and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Xylem Inc.	XYL	C
Watts Water Technologies, Inc.	WTS	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.

Xylem Inc. has a Earnings Estimate Score of 51, which is Neutral. Watts Water Technologies, Inc. has a Earnings Estimate Score of 67, which is Positive.

The Earnings Estimate Revisions Grade Winner: Watts Water Technologies, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Watts Water Technologies, Inc. has a better Earnings Estimate Revisions Grade than Xylem Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Watts Water Technologies, Inc. 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.

Other Xylem Inc., Watts Water Technologies and Inc. Grades

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

Momentum grades help 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.

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 Xylem Inc., Watts Water Technologies and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Xylem Inc., Watts Water Technologies or Inc. Stock?

Overall, Xylem Inc. stock has a Growth Score of 89, Estimate Revisions Score of 51 and Quality Score of 81.

Watts Water Technologies, Inc. stock has a Growth Score of 100, Estimate Revisions Score of 67 and Quality Score of 88.

Comparing Xylem Inc., Watts Water Technologies and Inc.’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.

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.