AWK vs PNR: How American Water Works and Pentair plc Compare (2026)
Last updated July 2026
Short answer
AWK is the larger of the two ($25.52B market cap): the incumbent the market prices for continued execution (19.93x forward earnings, beta 0.60). PNR is the smaller challenger ($12.31B), cheaper on forward earnings (13.11x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
AWK vs PNR: the tie-breaker metrics
Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | AWK | PNR | What it tells you |
|---|---|---|---|
| Market cap | $25.52B | $12.31B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.93 | 13.11 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 23.13 | 19.14 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.60 | 1.03 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 37% of range | 14% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.31 | 3.23 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: PNR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how AWK and PNR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AWK and PNR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AWK and PNR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does American Water Works (AWK) do?
American Water Works is the largest publicly traded, regulated water and wastewater utility in the United States, serving roughly 14 million people through regulated operations in 14 states plus 18 military installations. Its business model is classic rate-base utility economics: the company invests heavily in pipes, treatment plants, and water systems, then earns an allowed regulated return on that invested capital once state utility commissions approve rate cases. Growth comes from two levers, ongoing infrastructure spending and acquisitions of small municipal and investor-owned water systems that fold into its existing footprint.
What does Pentair plc (PNR) do?
Pentair plc is a roughly $4 billion revenue water treatment and flow company that most consumers know through its Pool segment, which makes pumps, filters, heaters, automation, and sanitization gear for residential and commercial swimming pools. Beyond pools, the Water Solutions segment sells residential and commercial water treatment (softeners, filtration, and quality systems) plus, after a January 2026 reorganization, the residential and irrigation flow business, while the Flow segment covers industrial, agricultural, and municipal pumps and fluid-handling equipment. As of July 2026 Pentair carries a market capitalization near $12 billion and trades around the high $70s, well off its 52-week highs above $110.
AWK vs PNR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- AWK drivers: Rate-base growth and capital investment; Acquisitions of municipal and small water systems.
- PNR drivers: Pool as the profit and growth engine; Transformation and margin expansion.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The biggest risk is regulatory: earnings depend on state utility commissions approving rate cases at constructive returns, and regulatory lag (the gap between when capital is spent and when rates are allowed to recover it) can pressure results. For PNR, pool and water-treatment demand is cyclical and sensitive to housing activity, discretionary spending, and interest rates, and new-pool construction has been soft, which pressures volumes.
AWK or PNR: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AWK if you believe its drivers more; PNR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AWK and PNR guides.
AWK vs PNR: the full fundamentals
AWK. AWK typically trades at a premium P/E to the broader market, reflecting its regulated, low-volatility earnings and long runway of rate-base growth. In the first quarter of 2026 revenue rose year over year to about $1.21 billion while adjusted EPS was roughly $1.01 (versus about $1.02 a year earlier), and management reaffirmed full-year 2026 EPS guidance of about $6.02 to $6.12. The dividend yields roughly 2.5-2.8%, modest in absolute terms but growing near the top of the utility peer group.
PNR. Pentair trades around the high $70s in July 2026, well below its 52-week high above $110, at roughly 19 times earnings with a dividend yield near 1.4 percent. Revenue has grown only modestly (Q1 2026 sales up about 3 percent to roughly $1.04 billion), so the earnings story is powered by margin expansion and price rather than volume. The valuation reflects a quality industrial compounder whose growth has cooled, leaving investors to judge whether margins and pool demand hold up.
Headline figures (approximate, JULY 2026): AWK shows market cap ~$26 billion, share price ~$135, q1 2026 revenue ~$1.21 billion, q1 2026 adjusted eps ~$1.01; PNR shows revenue (ttm) ~$4.1B, q1 2026 sales ~$1.04B (up ~3%), adjusted eps (2025) ~$4.86, 2026 adjusted eps guidance ~$5.30 to $5.40.
The bottom line: AWK vs PNR
AWK and PNR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AWK and PNR exposure against your real portfolio. It is not an investment adviser.
Build a basket around AWK with Walnut
Use American Water Works as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is the difference between AWK and PNR?
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American Water Works is the largest publicly traded, regulated water and wastewater utility in the United States, serving roughly 14 million people through regulated operations in 14 states plus 18 military installations. Pentair plc is a roughly $4 billion revenue water treatment and flow company that most consumers know through its Pool segment, which makes pumps, filters, heaters, automation, and sanitization gear for residential and commercial swimming pools. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AWK or PNR the better stock?
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Neither is universally better. AWK is the larger incumbent; PNR is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AWK or PNR?
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On forward P/E (as of July 2026), AWK trades at 19.93x and PNR at 13.11x, so PNR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AWK and PNR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AWK vs PNR?
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AWK: The biggest risk is regulatory: earnings depend on state utility commissions approving rate cases at constructive returns, and regulatory lag (the gap between when capital is spent and when rates are allowed to recover it) can pressure results. As a capital-intensive utility carrying substantial debt, AWK is sensitive to interest rates, which raise financing costs and can compress the valuation multiple. The pending Essential Utilities merger adds integration and approval risk, and could be delayed or altered by remaining regulators. Weather, drought, and water-quality or environmental compliance costs can also affect a given period. Finally, the stock often trades at a premium valuation, so disappointing rate outcomes or higher-for-longer rates can weigh on the shares. PNR: Pool and water-treatment demand is cyclical and sensitive to housing activity, discretionary spending, and interest rates, and new-pool construction has been soft, which pressures volumes. Tariffs and input-cost inflation are a meaningful headwind (management sized a roughly $140 million tariff impact into 2025 planning), and much of recent earnings growth has come from price and productivity rather than volume, so a stall in the transformation program would be felt quickly. The stock has fallen sharply from its highs, reflecting worries about durability of demand. Competition is intense across pools, water treatment, and flow, and a slower housing recovery or a broader consumer pullback could keep the top line stuck even if margins hold.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AWK or PNR; figures are approximate and dated (as of July 2026). Verify current data before investing.