WMS vs AAON

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus 1. 0% for Advanced Drainage Systems, Inc. (WMS). Advanced Drainage Systems, Inc. (WMS) offers the better valuation at 25. 8x trailing P/E (24. 5x forward), making it the more compelling value choice. Analysts rate AAON, Inc. (AAON) a "Buy" — based on 5 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, Advanced Drainage Systems, Inc.

(WMS) is the cheapest at 25. 8x versus AAON, Inc. at 76. 2x. On forward P/E, Advanced Drainage Systems, Inc. is actually cheaper at 24. 5x.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +134. 3%, compared to +39. 2% for Advanced Drainage Systems, Inc. (WMS). Over 10 years, the gap is even starker: WMS returned +567. 5% versus AAON's +440. 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), Advanced Drainage Systems, Inc.

(WMS) is the lower-risk stock at 1. 32β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 38% more volatile than WMS relative to the S&P 500. On balance sheet safety, AAON, Inc. (AAON) carries a lower debt/equity ratio of 48% versus 88% for Advanced Drainage Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AAON, Inc.

(AAON) is pulling ahead at 20. 1% versus 1. 0% for Advanced Drainage Systems, Inc. (WMS). On earnings-per-share growth, the picture is similar: Advanced Drainage Systems, Inc. grew EPS -10. 7% year-over-year, compared to -36. 1% for AAON, Inc.. Over a 3-year CAGR, AAON 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.

Advanced Drainage Systems, Inc.

(WMS) is the more profitable company, earning 15. 5% net margin versus 7. 5% for AAON, Inc. — meaning it keeps 15. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMS leads at 22. 6% versus 10. 1% for AAON. At the gross margin level — before operating expenses — WMS leads at 37. 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.

On forward earnings alone, Advanced Drainage Systems, Inc.

(WMS) trades at 24. 5x forward P/E versus 49. 6x for AAON, Inc. — 25. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMS: 36. 3% to $202. 67.

All stocks in this comparison pay dividends.

Advanced Drainage Systems, Inc. (WMS) offers the highest yield at 0. 4%, versus 0. 4% for AAON, Inc. (AAON).

For long-horizon retirement investors, Advanced Drainage Systems, Inc.

(WMS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+567. 5% 10Y return). AAON, Inc. (AAON) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WMS: +567. 5%, AAON: +440. 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.

In terms of investment character: WMS is a mid-cap quality compounder stock; AAON is a small-cap high-growth stock. 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.