Pentair vs Xylem Which Is More Attractive?

Pentair and Xylem are two leading companies in the water management industry, both specializing in providing innovative solutions for water treatment, pump systems, and fluid handling applications. Pentair has a strong global presence and a diversified portfolio of products, while Xylem is known for its focus on sustainability and environmental stewardship. Both companies have shown consistent growth in recent years, making them attractive options for investors seeking exposure to the water infrastructure sector. In this comparison, we will analyze the performance and key metrics of Pentair and Xylem stocks to determine which may be the better investment opportunity.

Pentair or Xylem?

When comparing Pentair and Xylem, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Pentair and Xylem.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Pentair has a dividend yield of 1.09%, while Xylem has a dividend yield of 1.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pentair reports a 5-year dividend growth of -3.47% year and a payout ratio of 22.58%. On the other hand, Xylem reports a 5-year dividend growth of 9.46% year and a payout ratio of 41.33%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Pentair P/E ratio at 26.23 and Xylem's P/E ratio at 36.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pentair P/B ratio is 5.00 while Xylem's P/B ratio is 2.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pentair has seen a 5-year revenue growth of 0.47%, while Xylem's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pentair's ROE at 19.80% and Xylem's ROE at 8.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $105.20 for Pentair and $123.25 for Xylem. Over the past year, Pentair's prices ranged from $60.38 to $107.32, with a yearly change of 77.74%. Xylem's prices fluctuated between $98.21 and $146.08, with a yearly change of 48.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.