WMS vs TREX

For growth investors, Trex Company, Inc.

(TREX) is the stronger pick with 2. 0% revenue growth year-over-year, versus 1. 0% for Advanced Drainage Systems, Inc. (WMS). Trex Company, Inc. (TREX) offers the better valuation at 22. 4x trailing P/E (24. 4x forward), making it the more compelling value choice. Analysts rate Advanced Drainage Systems, Inc. (WMS) a "Hold" — based on 22 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, Trex Company, Inc.

(TREX) is the cheapest at 22. 4x versus Advanced Drainage Systems, Inc. at 25. 8x. On forward P/E, Trex Company, Inc. is actually cheaper at 24. 4x.

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

(WMS) delivered a total return of +39. 2%, compared to -62. 4% for Trex Company, Inc. (TREX). Over 10 years, the gap is even starker: WMS returned +567. 5% versus TREX's +247. 6%. 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 Trex Company, Inc. 's 1. 47β — meaning TREX is approximately 11% more volatile than WMS relative to the S&P 500. On balance sheet safety, Trex Company, Inc. (TREX) carries a lower debt/equity ratio of 22% versus 88% for Advanced Drainage Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Trex Company, Inc.

(TREX) is pulling ahead at 2. 0% 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 -14. 8% for Trex Company, Inc.. Over a 3-year CAGR, TREX leads at 2. 0% 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.

Trex Company, Inc.

(TREX) is the more profitable company, earning 16. 2% net margin versus 15. 5% for Advanced Drainage Systems, Inc. — meaning it keeps 16. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMS leads at 22. 6% versus 22. 0% for TREX. At the gross margin level — before operating expenses — TREX leads at 39. 2%, 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, Trex Company, Inc.

(TREX) trades at 24. 4x forward P/E versus 24. 5x for Advanced Drainage Systems, Inc. — 0. 1x 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. TREX does not pay a meaningful dividend and should not be held primarily for income.

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). Both have compounded well over 10 years (WMS: +567. 5%, TREX: +247. 6%), 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.