BMI vs XYL

For growth investors, Badger Meter, Inc.

(BMI) is the stronger pick with 10. 9% revenue growth year-over-year, versus 5. 5% for Xylem Inc. (XYL). Badger Meter, Inc. (BMI) offers the better valuation at 25. 6x trailing P/E (26. 4x 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, Badger Meter, Inc.

(BMI) is the cheapest at 25. 6x versus Xylem Inc. at 29. 5x. On forward P/E, Xylem Inc. is actually cheaper at 20. 6x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Xylem Inc. wins at 0. 90x versus Badger Meter, Inc. 's 1. 14x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Badger Meter, Inc.

(BMI) delivered a total return of +39. 5%, compared to +2. 6% for Xylem Inc. (XYL). Over 10 years, the gap is even starker: BMI returned +242. 5% versus XYL's +200. 2%. 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. 84β versus Xylem Inc. 's 0. 90β — meaning XYL is approximately 6% 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 5. 5% for Xylem Inc. (XYL). On earnings-per-share growth, the picture is similar: Badger Meter, Inc. grew EPS 13. 2% year-over-year, compared to 7. 4% for Xylem Inc.. Over a 3-year CAGR, XYL leads at 17. 8% 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 10. 6% for Xylem 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 13. 5% for XYL. 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, Xylem Inc. (XYL) is the more undervalued stock at a PEG of 0. 90x versus Badger Meter, Inc. 's 1. 14x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Xylem Inc. (XYL) trades at 20. 6x forward P/E versus 26. 4x for Badger Meter, Inc. — 5. 8x 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.

Xylem Inc. (XYL) offers the highest yield at 1. 4%, versus 1. 2% for Badger Meter, Inc. (BMI).

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. 84), 1. 2% yield, +242. 5% 10Y return). Both have compounded well over 10 years (BMI: +242. 5%, XYL: +200. 2%), 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 XYL (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.