ZWS
Zurn Elkay Water Solutions Corporation
Industrial - Pollution & Treatment Controls
Market Cap$8.55B
5Y Perf.+117.3%
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Stock Comparison
ZWS vs RXO
Revenue, margins, valuation, and 5-year total return — side by side.
RXO
RXO, Inc.
Trucking
Market Cap$3.81B
5Y Perf.+10.2%
ZWS vs RXO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ZWS | RXO |
|---|---|---|
| Industry | Industrial - Pollution & Treatment Controls | Trucking |
| Market Cap | $8.55B | $3.81B |
| Revenue (TTM) | $1.74B | $4.31B |
| Net Income (TTM) | $213M | $-69M |
| Gross Margin | 43.7% | 17.5% |
| Operating Margin | 17.4% | -0.2% |
| Forward P/E | 29.0x | — |
| Total Debt | $581M | $861M |
| Cash & Equiv. | $301M | $18M |
ZWS vs RXO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ZWS
RXO
| Stock | Oct 22 | May 26 | Return |
|---|---|---|---|
| Zurn Elkay Water So… (ZWS) | 100 | 217.3 | +117.3% |
| RXO, Inc. (RXO) | 100 | 110.2 | +10.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ZWS vs RXO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ZWS leads in 4 of 6 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. RXO, Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
ZWS
Zurn Elkay Water Solutions Corporation
The Income Pick
ZWS carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 3 yrs, beta 1.11, yield 0.7%
- 435.0% 10Y total return vs RXO's 10.2%
- Lower volatility, beta 1.11, Low D/E 36.2%, current ratio 3.13x
Best for: income & stability and long-term compounding
RXO
RXO, Inc.
The Growth Play
RXO is the clearest fit if your priority is growth exposure.
- Rev growth 26.2%, EPS growth 72.8%, 3Y rev CAGR 6.2%
- 26.2% revenue growth vs ZWS's 8.3%
- +78.2% vs ZWS's +50.2%
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RXO | 26.2% revenue growth vs ZWS's 8.3% |
| Quality / Margins | ZWS | 12.3% margin vs RXO's -1.6% |
| Stability / Safety | ZWS | Beta 1.11 vs RXO's 2.74, lower leverage |
| Dividends | ZWS | 0.7% yield; 3-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | RXO | +78.2% vs ZWS's +50.2% |
| Efficiency (ROA) | ZWS | 8.0% ROA vs RXO's -2.9%, ROIC 11.3% vs -0.2% |
ZWS vs RXO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
ZWS vs RXO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLZWSLAGGINGRXO
RXORXO, Inc.
1leads
ZWSZurn Elkay Water Solu…
3leads
6 Total Categories
CATEGORYLEADERvs RXOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ZWS6/6
Valuation MetricsMultiples, price ratios, and targets
RXO3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ZWS9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ZWS4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
ZWS leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RXO is the larger business by revenue, generating $4.3B annually — 2.5x ZWS's $1.7B. ZWS is the more profitable business, keeping 12.3% of every revenue dollar as net income compared to RXO's -1.6%. On growth, ZWS holds the edge at +11.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $4.3B |
| EBITDAEarnings before interest/tax | $371M | $77M |
| Net IncomeAfter-tax profit | $213M | -$69M |
| Free Cash FlowCash after capex | $321M | $9M |
| Gross MarginGross profit ÷ Revenue | +43.7% | +17.5% |
| Operating MarginEBIT ÷ Revenue | +17.4% | -0.2% |
| Net MarginNet income ÷ Revenue | +12.3% | -1.6% |
| FCF MarginFCF ÷ Revenue | +18.4% | +0.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.4% | -99.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +40.0% | -16.7% |
ZWS leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
RXO leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, ZWS's 23.4x EV/EBITDA is more attractive than RXO's 42.7x.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| Market CapShares × price | $8.6B | $3.8B |
| Enterprise ValueMkt cap + debt − cash | $8.8B | $4.7B |
| Trailing P/EPrice ÷ TTM EPS | 45.57x | -39.24x |
| Forward P/EPrice ÷ next-FY EPS est. | 29.04x | — |
| PEG RatioP/E ÷ EPS growth rate | 1.43x | — |
| EV / EBITDAEnterprise value multiple | 23.41x | 42.72x |
| Price / SalesMarket cap ÷ Revenue | 5.04x | 0.66x |
| Price / BookPrice ÷ Book value/share | 5.45x | 2.53x |
| Price / FCFMarket cap ÷ FCF | 27.01x | — |
RXO leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
ZWS leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
ZWS delivers a 13.4% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $-6 for RXO. ZWS carries lower financial leverage with a 0.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to RXO's 0.56x. On the Piotroski fundamental quality scale (0–9), ZWS scores 7/9 vs RXO's 6/9, reflecting strong financial health.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +13.4% | -5.9% |
| ROA (TTM)Return on assets | +8.0% | -2.9% |
| ROICReturn on invested capital | +11.3% | -0.2% |
| ROCEReturn on capital employed | +12.0% | -0.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.36x | 0.56x |
| Net DebtTotal debt minus cash | $280M | $843M |
| Cash & Equiv.Liquid assets | $301M | $18M |
| Total DebtShort + long-term debt | $581M | $861M |
| Interest CoverageEBIT ÷ Interest expense | 11.08x | -3.15x |
ZWS leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ZWS leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ZWS five years ago would be worth $20,799 today (with dividends reinvested), compared to $11,024 for RXO. Over the past 12 months, RXO leads with a +78.2% total return vs ZWS's +50.2%. The 3-year compound annual growth rate (CAGR) favors ZWS at 34.3% vs RXO's 6.2% — a key indicator of consistent wealth creation.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +9.2% | +80.3% |
| 1-Year ReturnPast 12 months | +50.2% | +78.2% |
| 3-Year ReturnCumulative with dividends | +142.5% | +19.6% |
| 5-Year ReturnCumulative with dividends | +108.0% | +10.2% |
| 10-Year ReturnCumulative with dividends | +435.0% | +10.2% |
| CAGR (3Y)Annualised 3-year return | +34.3% | +6.2% |
ZWS leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ZWS and RXO each lead in 1 of 2 comparable metrics.
Risk & Volatility
ZWS is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than RXO's 2.74 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RXO currently trades 99.4% from its 52-week high vs ZWS's 94.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.11x | 2.74x |
| 52-Week HighHighest price in past year | $53.76 | $23.29 |
| 52-Week LowLowest price in past year | $33.95 | $10.43 |
| % of 52W HighCurrent price vs 52-week peak | +94.9% | +99.4% |
| RSI (14)Momentum oscillator 0–100 | 57.5 | 62.5 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 1.9M |
Evenly matched — ZWS and RXO each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates ZWS as "Hold" and RXO as "Hold". Consensus price targets imply 7.2% upside for ZWS (target: $55) vs -30.9% for RXO (target: $16). ZWS is the only dividend payer here at 0.73% yield — a key consideration for income-focused portfolios.
| Metric | ZWSZurn Elkay Water … | RXORXO, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $54.71 | $16.00 |
| # AnalystsCovering analysts | 8 | 20 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | — |
| Dividend StreakConsecutive years of raises | 3 | — |
| Dividend / ShareAnnual DPS | $0.37 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | +0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
ZWS leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RXO leads in 1 (Valuation Metrics). 1 tied.
Best OverallZurn Elkay Water Solutions … (ZWS)Leads 3 of 6 categories
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ZWS vs RXO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ZWS or RXO a better buy right now?
For growth investors, RXO, Inc.
(RXO) is the stronger pick with 26. 2% revenue growth year-over-year, versus 8. 3% for Zurn Elkay Water Solutions Corporation (ZWS). Zurn Elkay Water Solutions Corporation (ZWS) offers the better valuation at 45. 6x trailing P/E (29. 0x forward), making it the more compelling value choice. Analysts rate Zurn Elkay Water Solutions Corporation (ZWS) a "Hold" — based on 8 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.
02Which is the better long-term investment — ZWS or RXO?
Over the past 5 years, Zurn Elkay Water Solutions Corporation (ZWS) delivered a total return of +108.
0%, compared to +10. 2% for RXO, Inc. (RXO). Over 10 years, the gap is even starker: ZWS returned +435. 0% versus RXO's +10. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ZWS or RXO?
By beta (market sensitivity over 5 years), Zurn Elkay Water Solutions Corporation (ZWS) is the lower-risk stock at 1.
11β versus RXO, Inc. 's 2. 74β — meaning RXO is approximately 147% more volatile than ZWS relative to the S&P 500. On balance sheet safety, Zurn Elkay Water Solutions Corporation (ZWS) carries a lower debt/equity ratio of 36% versus 56% for RXO, Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — ZWS or RXO?
By revenue growth (latest reported year), RXO, Inc.
(RXO) is pulling ahead at 26. 2% versus 8. 3% for Zurn Elkay Water Solutions Corporation (ZWS). On earnings-per-share growth, the picture is similar: RXO, Inc. grew EPS 72. 8% year-over-year, compared to 21. 7% for Zurn Elkay Water Solutions Corporation. Over a 3-year CAGR, ZWS leads at 9. 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.
05Which has better profit margins — ZWS or RXO?
Zurn Elkay Water Solutions Corporation (ZWS) is the more profitable company, earning 11.
7% net margin versus -1. 7% for RXO, Inc. — meaning it keeps 11. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZWS leads at 17. 0% versus -0. 1% for RXO. At the gross margin level — before operating expenses — ZWS leads at 41. 6%, 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.
06Is ZWS or RXO more undervalued right now?
Analyst consensus price targets imply the most upside for ZWS: 7.
2% to $54. 71.
07Which pays a better dividend — ZWS or RXO?
In this comparison, ZWS (0.
7% yield) pays a dividend. RXO does not pay a meaningful dividend and should not be held primarily for income.
08Is ZWS or RXO better for a retirement portfolio?
For long-horizon retirement investors, Zurn Elkay Water Solutions Corporation (ZWS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.
11), 0. 7% yield, +435. 0% 10Y return). RXO, Inc. (RXO) carries a higher beta of 2. 74 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ZWS: +435. 0%, RXO: +10. 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.
09What are the main differences between ZWS and RXO?
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: ZWS is a small-cap quality compounder stock; RXO is a small-cap high-growth stock. ZWS pays a dividend while RXO does not, making them suitable for different income and tax situations. 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.
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