DCI vs MWA

For growth investors, Mueller Water Products, Inc.

(MWA) is the stronger pick with 8. 7% revenue growth year-over-year, versus 2. 9% for Donaldson Company, Inc. (DCI). Mueller Water Products, Inc. (MWA) offers the better valuation at 22. 2x trailing P/E (18. 8x forward), making it the more compelling value choice. Analysts rate Donaldson Company, Inc. (DCI) a "Hold" — based on 14 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. 2x versus Donaldson Company, Inc. at 28. 7x. On forward P/E, Mueller Water Products, Inc. is actually cheaper at 18. 8x. 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. 85x versus Donaldson Company, Inc. 's 2. 50x — 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 +90. 8%, compared to +44. 3% for Donaldson Company, Inc. (DCI). Over 10 years, the gap is even starker: DCI returned +198. 7% versus MWA's +181. 9%. 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), Donaldson Company, Inc.

(DCI) is the lower-risk stock at 0. 97β versus Mueller Water Products, Inc. 's 1. 02β — meaning MWA is approximately 4% more volatile than DCI relative to the S&P 500. On balance sheet safety, Mueller Water Products, Inc. (MWA) carries a lower debt/equity ratio of 46% versus 50% for Donaldson Company, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Mueller Water Products, Inc.

(MWA) is pulling ahead at 8. 7% versus 2. 9% for Donaldson Company, Inc. (DCI). On earnings-per-share growth, the picture is similar: Mueller Water Products, Inc. grew EPS 64. 9% year-over-year, compared to -9. 8% for Donaldson Company, Inc.. Over a 3-year CAGR, MWA leads at 4. 7% 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.

Mueller Water Products, Inc.

(MWA) is the more profitable company, earning 13. 4% net margin versus 9. 9% for Donaldson Company, Inc. — meaning it keeps 13. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MWA leads at 18. 2% versus 15. 1% for DCI. At the gross margin level — before operating expenses — MWA leads at 36. 1%, 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. 85x versus Donaldson Company, Inc. 's 2. 50x. 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. 8x forward P/E versus 22. 0x for Donaldson Company, Inc. — 3. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MWA: 22. 8% to $33. 33.

All stocks in this comparison pay dividends.

Donaldson Company, Inc. (DCI) offers the highest yield at 1. 2%, versus 1. 0% for Mueller Water Products, Inc. (MWA).

For long-horizon retirement investors, Donaldson Company, Inc.

(DCI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 97), 1. 2% yield, +198. 7% 10Y return). Both have compounded well over 10 years (DCI: +198. 7%, MWA: +181. 9%), 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.