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XYL vs ZWS
Which Stock Would AI Choose? Xylem Inc. (XYL) vs. Zurn Elkay Water Solutions Corporation (ZWS) Stock Comparison
Key Takeaways
- Both XYL and ZWS provide water technology solutions in the industrials sector, capitalizing on global demand for infrastructure upgrades and sustainability initiatives.
- ZWS shows stronger recent momentum with year-to-date (YTD) gains of 13.11% and one-year returns of 56.96%, compared to XYL's 10.51% YTD and 6.35% over one year.
- XYL boasts a larger market capitalization of $29.5 billion versus ZWS's $8.8 billion, offering greater scale but higher valuation at a P/E (price-to-earnings) ratio of 30.98 compared to 42.66.
- Recent earnings beats for both: ZWS in Q1 FY26 and XYL in Q4 FY25, with ZWS stock rallying post-report.
- XYL faces near-term scrutiny ahead of Q1 2026 results, following a UBS downgrade, while ZWS benefits from raised price targets.
Introduction
Xylem Inc. (XYL) and Zurn Elkay Water Solutions Corporation (ZWS) are key players in the water management industry, focusing on treatment, distribution, and conservation technologies. This comparison is relevant for investors eyeing industrials sector opportunities amid rising infrastructure spending and water scarcity concerns. Traders seeking relative performance insights in a volatile market, particularly those tracking environmental, social, and governance (ESG) themes, may find value in evaluating their business models, recent momentum, and market positioning for potential portfolio allocation.
XYL Overview and Recent Performance
Xylem Inc. (XYL) designs and manufactures equipment for water transportation, treatment, testing, and wastewater management, serving utilities, industrial, and residential markets globally. In recent market activity, the stock has traded around $121, within a 52-week range of $114 to $154, reflecting YTD gains of about 10.5% but modest one-year returns of 6.4%. Sentiment has been tempered by a roughly 5% pullback over recent weeks, influenced by a UBS downgrade to neutral with a $132 price target, amid broader sector rotation. However, Q4 FY25 results showed revenue of $2.4 billion and EPS (earnings per share) of $1.42, slightly beating estimates, bolstering confidence ahead of Q1 2026 earnings. Key drivers include demand for digital water solutions and acquisitions enhancing its measurement and control offerings.
ZWS Overview and Recent Performance
Zurn Elkay Water Solutions Corporation (ZWS) specializes in water control products like drinking fountains, faucets, and treatment systems for commercial, municipal, and industrial applications. Recently, shares have hovered near $52, near the 52-week high of $54 from a low of $34, with robust YTD performance of 13.1% and one-year gains exceeding 57%. Positive sentiment stems from Q1 FY26 results, with revenue of $433 million (up 11% year-over-year) and earnings of $70.2 million, surpassing expectations and driving a post-earnings rally. Analysts like RBC raised price targets to $56, citing strength in drinking water segments. Performance reflects resilient demand in non-residential markets despite economic headwinds.
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Head-to-Head Comparison
XYL and ZWS both leverage water sector tailwinds but differ in scale and focus: XYL's global pump and analytics portfolio drives broader industrial exposure, while ZWS emphasizes commercial plumbing and treatment controls. Growth drivers for ZWS include superior recent sales momentum and margin expansion, contrasting XYL's steady but slower revenue trajectory. Risk factors involve supply chain pressures and interest rate sensitivity for both, though XYL's larger size ($29.5B market cap) provides stability versus ZWS's higher P/E reflecting growth premium. Market sentiment favors ZWS on earnings beats, while XYL anticipates catalysts from upcoming results.
Tickeron AI Verdict
Tickeron's AI models currently lean toward ZWS due to its consistent earnings outperformance, superior relative momentum, and positive analyst revisions in recent market activity. XYL offers greater stability and diversified exposure but trails on trend strength. This positioning suggests higher near-term probability for ZWS in momentum-driven strategies, subject to evolving catalysts like XYL's next earnings.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is XYL is a Buy and ZWS is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
XYL’s FA Score shows that 1 FA rating(s) are green whileZWS’s FA Score has 1 green FA rating(s).
- XYL’s FA Score: 1 green, 4 red.
- ZWS’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
XYL’s TA Score shows that 6 TA indicator(s) are bullish while ZWS’s TA Score has 4 bullish TA indicator(s).
- XYL’s TA Score: 6 bullish, 2 bearish.
- ZWS’s TA Score: 4 bullish, 5 bearish.
Price Growth
XYL (@Industrial Machinery) experienced а +0.72% price change this week, while ZWS (@Industrial Specialties) price change was +1.66% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.96%. For the same industry, the average monthly price growth was +6.28%, and the average quarterly price growth was +10.97%.
The average weekly price growth across all stocks in the @Industrial Specialties industry was +4.79%. For the same industry, the average monthly price growth was +3.93%, and the average quarterly price growth was +3.19%.
Reported Earning Dates
XYL is expected to report earnings on Aug 04, 2026.
ZWS is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Industrial Machinery (+1.96% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
@Industrial Specialties (+4.79% weekly)Companies in the industrial specialties industry process basic materials and minerals into various specialty products, such as flat and safety glass, fire retardant products, paints and coatings. Examples of companies operating in this industry are Sherwin-Williams Company, PPG Industries, Inc. and RPM International Inc.
| XYL | ZWS | XYL / ZWS | |
| Capitalization | 26.6B | 8.28B | 321% |
| EBITDA | 1.8B | 392M | 460% |
| Gain YTD | -17.324 | 7.261 | -239% |
| P/E Ratio | 27.80 | 40.36 | 69% |
| Revenue | 9.09B | 1.74B | 522% |
| Total Cash | 808M | 274M | 295% |
| Total Debt | 2.06B | 552M | 373% |
XYL | ZWS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 27 | 12 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 21 Undervalued | 56 Fair valued | |
PROFIT vs RISK RATING 1..100 | 95 | 31 | |
SMR RATING 1..100 | 75 | 62 | |
PRICE GROWTH RATING 1..100 | 60 | 45 | |
P/E GROWTH RATING 1..100 | 70 | 45 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
XYL's Valuation (21) in the Industrial Machinery industry is somewhat better than the same rating for ZWS (56). This means that XYL’s stock grew somewhat faster than ZWS’s over the last 12 months.
ZWS's Profit vs Risk Rating (31) in the Industrial Machinery industry is somewhat better than the same rating for XYL (95). This means that ZWS’s stock grew somewhat faster than XYL’s over the last 12 months.
ZWS's SMR Rating (62) in the Industrial Machinery industry is in the same range as XYL (75). This means that ZWS’s stock grew similarly to XYL’s over the last 12 months.
ZWS's Price Growth Rating (45) in the Industrial Machinery industry is in the same range as XYL (60). This means that ZWS’s stock grew similarly to XYL’s over the last 12 months.
ZWS's P/E Growth Rating (45) in the Industrial Machinery industry is in the same range as XYL (70). This means that ZWS’s stock grew similarly to XYL’s over the last 12 months.
| XYL | ZWS | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 51% | N/A |
| Stochastic ODDS (%) | 2 days ago 58% | 2 days ago 60% |
| Momentum ODDS (%) | 2 days ago 63% | 2 days ago 63% |
| MACD ODDS (%) | 2 days ago 47% | 2 days ago 53% |
| TrendWeek ODDS (%) | 2 days ago 55% | 2 days ago 65% |
| TrendMonth ODDS (%) | 2 days ago 52% | 2 days ago 62% |
| Advances ODDS (%) | 2 days ago 55% | 8 days ago 63% |
| Declines ODDS (%) | 16 days ago 59% | 16 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 67% | 2 days ago 67% |
| Aroon ODDS (%) | 2 days ago 43% | 2 days ago 57% |
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