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. or Flowserve 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 Xylem Inc. and Flowserve Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Xylem Inc. and Flowserve Corporation

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 four segments: Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services. The company offers water, wastewater and storm water pumps, and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Vortisand, 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, Lowara, and Standard Xchange brands. It also provides smart meters, network communication devices, data analytics, test instruments, controls, sensor devices, software and managed services, and critical infrastructure services; and software and services including cloud-based analytics, and remote monitoring and data management under the Sensus, 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 leak detection, condition assessment and asset management and pressure monitoring solutions under the AquaPro, WaterOne, Ion Pure, Flygt, Pure Technologies, and Godwin brands. The company was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. Xylem Inc. was incorporated in 2011 and is headquartered in Washington, District Of Columbia.

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Flowserve Pump Division (FPD) and Flow Control Division (FCD). The company offers custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems, replacement parts, and related aftermarket services; and manufactures gas-lubricated mechanical seal for gas pipelines and in the oil and gas production and process markets. It also provides equipment services, including installation, commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions. In addition, the company offers engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related services and equipment; and actuators, positioners, and switches used to control, direct and manage the flow of liquids, gases and multi-phase fluids, and are a critical part of any flow control system. Further, it provides equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. The company sells under the Valtek, Argus, Worcester, Limitorque, and Durco brands. It serves oil and gas, power generation, chemical, water management and general industries, water management, and other general industries, including mining, food and beverage, steel, and pulp and paper industries. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was founded in 1790 and is headquartered in Irving, Texas.

Latest Machinery and Xylem Inc., Flowserve Corporation Stock News

As of February 6, 2026, Xylem Inc. had a $34.6 billion market capitalization, compared to the Machinery median of $3.9 million. Xylem Inc.’s stock is up 4.4% in 2026, up 3.1% in the previous five trading days and up 9.48% in the past year.

Currently, Xylem Inc.’s price-earnings ratio is 36.6. Xylem Inc.’s trailing 12-month revenue is $8.9 billion with a 10.7% net profit margin. Year-over-year quarterly sales growth most recently was 7.8%. Analysts expect adjusted earnings to reach $5.062 per share for the current fiscal year. Xylem Inc. currently has a 1.1% dividend yield.

As of February 6, 2026, Flowserve Corporation had a $10.9 billion market cap, putting it in the 79th percentile of all stocks. Flowserve Corporation’s stock is up 23.2% in 2026, up 9.4% in the previous five trading days and up 35.18% in the past year.

Currently, Flowserve Corporation’s price-earnings ratio is 24.9. Flowserve Corporation’s trailing 12-month revenue is $4.7 billion with a 7.3% net profit margin. Year-over-year quarterly sales growth most recently was 3.6%. Analysts expect adjusted earnings to reach $3.465 per share for the current fiscal year. Flowserve Corporation currently has a 1.0% dividend yield.

How We Compare Xylem Inc. and Flowserve 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 Xylem Inc. and Flowserve Corporation’s stock grades to see how they measure up against one another.

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Xylem Inc. and Flowserve Corporation Growth Grades

Company	Ticker	Growth
Xylem Inc.	XYL	A
Flowserve Corporation	FLS	D

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 87, which is Very Strong. Flowserve Corporation has a Growth Score of 33, which is Weak.

The Growth Grade Winner: Xylem Inc.

As you can clearly see from the Growth Grade breakdown above, Xylem Inc. has a more attractive growth grade than Flowserve Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, Xylem Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Xylem Inc. and Flowserve Corporation’s Momentum Grades

Company	Ticker	Momentum
Xylem Inc.	XYL	D
Flowserve Corporation	FLS	B

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%.

Xylem Inc. has a Momentum Score of 39, which is Weak. Flowserve Corporation has a Momentum Score of 74, which is Strong.

The Momentum Grade Winner: Flowserve Corporation

As you can clearly see from the Momentum Grade breakdown above, Flowserve Corporation is considered to have stronger momentum compared to Xylem Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Flowserve Corporation could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Xylem Inc. and Flowserve Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Xylem Inc.	XYL	B
Flowserve Corporation	FLS	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 67, which is Positive. Flowserve Corporation has a Earnings Estimate Score of 68, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Xylem Inc. and Flowserve Corporation have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Xylem Inc. or Flowserve Corporation is a better fit.

Other Xylem Inc. and Flowserve Corporation Grades

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

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.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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. and Flowserve Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Xylem Inc. or Flowserve Corporation Stock?

Overall, Xylem Inc. stock has a Growth Score of 87, Momentum Score of 39 and Estimate Revisions Score of 67.

Flowserve Corporation stock has a Growth Score of 33, Momentum Score of 74 and Estimate Revisions Score of 68.

Comparing Xylem Inc. and Flowserve 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.

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.