WMS vs NVR

For growth investors, Advanced Drainage Systems, Inc.

(WMS) is the stronger pick with 1. 0% revenue growth year-over-year, versus -2. 1% for NVR, Inc. (NVR). NVR, Inc. (NVR) offers the better valuation at 14. 0x trailing P/E (16. 9x forward), making it the more compelling value choice. Analysts rate NVR, Inc. (NVR) a "Buy" — based on 24 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, NVR, Inc.

(NVR) is the cheapest at 14. 0x versus Advanced Drainage Systems, Inc. at 25. 8x. On forward P/E, NVR, Inc. is actually cheaper at 16. 9x.

Over the past 5 years, Advanced Drainage Systems, Inc.

(WMS) delivered a total return of +39. 2%, compared to +18. 6% for NVR, Inc. (NVR). Over 10 years, the gap is even starker: WMS returned +567. 5% versus NVR's +272. 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), NVR, Inc.

(NVR) is the lower-risk stock at 0. 68β versus Advanced Drainage Systems, Inc. 's 1. 32β — meaning WMS is approximately 95% more volatile than NVR relative to the S&P 500. On balance sheet safety, NVR, Inc. (NVR) carries a lower debt/equity ratio of 31% versus 88% for Advanced Drainage Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Advanced Drainage Systems, Inc.

(WMS) is pulling ahead at 1. 0% versus -2. 1% for NVR, Inc. (NVR). On earnings-per-share growth, the picture is similar: Advanced Drainage Systems, Inc. grew EPS -10. 7% year-over-year, compared to -13. 8% for NVR, Inc.. Over a 3-year CAGR, WMS leads at 1. 6% 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 13. 0% for NVR, 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 16. 2% for NVR. 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, NVR, Inc.

(NVR) trades at 16. 9x forward P/E versus 24. 5x for Advanced Drainage Systems, Inc. — 7. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMS: 36. 3% to $202. 67.

In this comparison, WMS (0.

4% yield) pays a dividend. NVR does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, NVR, Inc.

(NVR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), +272. 4% 10Y return). Both have compounded well over 10 years (NVR: +272. 4%, WMS: +567. 5%), 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 (WMS (Industrials) and NVR (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WMS is a mid-cap quality compounder stock; NVR is a mid-cap deep-value 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.