BMI vs MWA

For growth investors, Badger Meter, Inc.

(BMI) is the stronger pick with 10. 9% revenue growth year-over-year, versus 8. 7% for Mueller Water Products, Inc. (MWA). Mueller Water Products, Inc. (MWA) offers the better valuation at 22. 0x trailing P/E (18. 6x forward), making it the more compelling value choice. Analysts rate Badger Meter, Inc. (BMI) a "Hold" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Mueller Water Products, Inc.

(MWA) is the cheapest at 22. 0x versus Badger Meter, Inc. at 25. 6x. On forward P/E, Mueller Water Products, Inc. is actually cheaper at 18. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Mueller Water Products, Inc. wins at 0. 84x versus Badger Meter, Inc. 's 1. 18x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Mueller Water Products, Inc.

(MWA) delivered a total return of +89. 1%, compared to +39. 5% for Badger Meter, Inc. (BMI). Over 10 years, the gap is even starker: BMI returned +253. 6% versus MWA's +179. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Badger Meter, Inc.

(BMI) is the lower-risk stock at 0. 87β versus Mueller Water Products, Inc. 's 1. 02β — meaning MWA is approximately 17% more volatile than BMI relative to the S&P 500.

By revenue growth (latest reported year), Badger Meter, Inc.

(BMI) is pulling ahead at 10. 9% versus 8. 7% for Mueller Water Products, Inc. (MWA). On earnings-per-share growth, the picture is similar: Mueller Water Products, Inc. grew EPS 64. 9% year-over-year, compared to 13. 2% for Badger Meter, Inc.. Over a 3-year CAGR, BMI leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Badger Meter, Inc.

(BMI) is the more profitable company, earning 15. 5% net margin versus 13. 4% for Mueller Water Products, Inc. — meaning it keeps 15. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BMI leads at 20. 0% versus 18. 2% for MWA. At the gross margin level — before operating expenses — BMI leads at 41. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Mueller Water Products, Inc. (MWA) is the more undervalued stock at a PEG of 0. 84x versus Badger Meter, Inc. 's 1. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Mueller Water Products, Inc. (MWA) trades at 18. 6x forward P/E versus 27. 3x for Badger Meter, Inc. — 8. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BMI: 40. 4% to $172. 14.

All stocks in this comparison pay dividends.

Badger Meter, Inc. (BMI) offers the highest yield at 1. 2%, versus 1. 0% for Mueller Water Products, Inc. (MWA).

For long-horizon retirement investors, Badger Meter, Inc.

(BMI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 1. 2% yield, +253. 6% 10Y return). Both have compounded well over 10 years (BMI: +253. 6%, MWA: +179. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (BMI (Technology) and MWA (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.