AWK vs ROP: How American Water Works and Roper Technologies has spent the past decade reinventing itself from an industrial tools and equipment maker into a diversified holding company whose center of gravity Compare (2026)
Last updated July 2026
Short answer
ROP is the larger of the two ($35.92B market cap): the incumbent the market prices for continued execution (14.91x forward earnings, beta 0.75). AWK is the smaller challenger ($25.52B), actually pricier on forward earnings (19.93x): 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 ROP: 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 | ROP | What it tells you |
|---|---|---|---|
| Market cap | $25.52B | $35.92B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.93 | 14.91 | 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 | 22.22 | 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 | 0.75 | 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 | 19% 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 | 1.94 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: ROP 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 ROP 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 ROP 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 ROP 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 Roper Technologies has spent the past decade reinventing itself from an industrial tools and equipment maker into a diversified holding company whose center of gravity (ROP) do?
Roper Technologies has spent the past decade reinventing itself from an industrial tools and equipment maker into a diversified holding company whose center of gravity is vertical-market software. It operates through three segments: Application Software (businesses like Deltek for government contractors, Vertafore in insurance, Aderant for law firms, Frontline in K-12 education, and Clinisys in diagnostics), Network Software (network-effect platforms such as DAT in freight and iPipeline in insurance), and Technology Enabled Products (Neptune water meters, Verathon and CIVCO in medical devices). More than half of total revenue is now recurring, coming from SaaS subscriptions, maintenance and transaction fees, and application plus network software together generate roughly three-quarters of revenue.
AWK vs ROP: 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.
- ROP drivers: Acquisition-driven compounding; Recurring, high-margin software mix.
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 ROP, the clearest risk is valuation: ROP trades at a premium multiple, so disappointing results or a slower deal pace can compress the stock even if the business stays healthy.
AWK or ROP: 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; ROP 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 ROP guides.
AWK vs ROP: 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.
ROP. Roper's Q1 2026 revenue rose about 11% year over year to roughly $2.10 billion, split between 6% organic growth and 5% from acquisitions, and it raised full-year adjusted earnings guidance while adding to its buyback authorization. Net margins sit near 19% to 20% and adjusted EBITDA margins around 38%, reflecting the software-heavy mix. The forward multiple in the mid-to-high teens is well below the stock's longer-run median, which bulls read as more reasonable and bears view as still-full for a business dependent on ongoing M&A.
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; ROP shows revenue (ttm) ~$8.0 billion, q1 2026 revenue ~$2.10 billion (up ~11% YoY), market cap ~$35-36 billion, fy2026 adjusted deps guidance ~$21.80-$22.05.
The bottom line: AWK vs ROP
AWK and ROP 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 ROP 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 ROP?
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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. Roper Technologies has spent the past decade reinventing itself from an industrial tools and equipment maker into a diversified holding company whose center of gravity is vertical-market software. 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 ROP the better stock?
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Neither is universally better. ROP is the larger incumbent; AWK is the smaller challenger and looks pricier 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 ROP?
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On forward P/E (as of July 2026), AWK trades at 19.93x and ROP at 14.91x, so ROP 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 ROP?
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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 ROP?
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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. ROP: The clearest risk is valuation: ROP trades at a premium multiple, so disappointing results or a slower deal pace can compress the stock even if the business stays healthy. The model depends on continually acquiring good companies at sensible prices, and rising multiples for premium software assets can weigh on returns over time. Aggressive M&A has also lifted leverage (around 3.1x) and left goodwill and intangibles as a large share of the balance sheet, creating impairment risk if acquired businesses underperform. AI could disrupt the switching costs and stickiness that protect its software niches. Finally, as a decentralized holding company spanning dozens of businesses, execution and integration risk is spread across many units and is harder for outsiders to monitor.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AWK or ROP; figures are approximate and dated (as of July 2026). Verify current data before investing.