BMI vs XYL: Which Is the Better Buy in 2026?

Last updated August 2026

Short answer

XYL is the larger of the two ($27.31B market cap): the incumbent the market prices for continued execution (18.89x forward earnings, beta 1.02). BMI is the smaller challenger ($3.89B), actually pricier on forward earnings (27.19x): 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.

BMI vs XYL: the tie-breaker metrics

Same yardstick, side by side (as of August 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	BMI	XYL	What it tells you
Market cap	$3.89B	$27.31B	Size. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E	27.19	18.89	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	31.46	27.85	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	0.64	1.02	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	24% of range	24% 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	5.70	2.48	How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

Reading it: XYL 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 BMI and XYL 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. BMI and XYL 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 BMI and XYL 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 Badger Meter (BMI) do?

Full BMI guide

What does Xylem (XYL) do?

Xylem was spun out of ITT in 2011 and has become the largest publicly traded pure-play water technology company, operating through four segments: Water Infrastructure (transport and treatment for utilities), Applied Water (pumps and equipment for building and industrial use), Measurement and Control Solutions (smart meters, sensors and the Sensus platform), and Water Solutions and Services (the outsourced treatment and services business built up by the 2023 Evoqua acquisition). Its customers are heavily weighted toward water and wastewater utilities plus industrial users, which gives it exposure to non-discretionary, regulation-driven spending on aging pipes, leak detection, metering and treatment.

Full XYL guide

BMI vs XYL: 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.

BMI drivers: Cellular AMI installed base; Recurring software and SaaS attach.
XYL drivers: Aging infrastructure and water scarcity; Digital water and smart metering.

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: Near-term results are exposed to the timing of large utility AMI projects and to weaker short-cycle order rates, both of which pressured Q1 2026 revenue and earnings. For XYL, organic growth has been flat in recent quarters even as reported revenue grew, so the premium valuation leaves little room for disappointment if utility or industrial demand slows.

BMI or XYL: 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 BMI if you believe its drivers more; XYL 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 BMI and XYL guides.

BMI vs XYL: the full fundamentals

BMI. Badger Meter is a profitable, mid-cap water-technology company with roughly $900 million in trailing revenue and mid-teens net margins. The premium P/E (about 32x) reflects the market pricing in durable software-driven growth and a long dividend record. Q1 2026 revenue fell about 9% year over year on softer project timing and short-cycle orders, and management guided to a second-half improvement excluding the UDlive deal.

XYL. Xylem generates roughly $9 billion in annual revenue and beat expectations in Q1 2026, delivering about $2.1 billion of revenue and around $1.12 in adjusted EPS while raising full-year guidance to a midpoint near $9.25 billion. At a market cap around $28 billion and a trailing P/E in the mid-30s, the stock trades at a premium to the broader industrials group, reflecting its pure-play water exposure and margin trajectory. Organic growth was roughly flat in the quarter even as reported revenue rose, so valuation leans on continued margin expansion.

Headline figures (approximate, JULY 2026): BMI shows revenue (ttm) ~$900M, q1 2026 net sales ~$202M (down from ~$222M), q1 2026 eps ~$0.93, market cap ~$4.5B; XYL shows revenue (ttm) ~$9.1B, q1 2026 revenue ~$2.1B, 2026 revenue guidance (midpoint) ~$9.25B, q1 2026 adjusted eps ~$1.12.

The bottom line: BMI vs XYL

BMI and XYL 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 BMI and XYL exposure against your real portfolio. It is not an investment adviser.

Wondering how BMI or XYL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in Badger Meter with AI

Connect the broker you already use and ask Walnut's AI how BMI fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

See how it fits your portfolio

FAQ

What is the difference between BMI and XYL?

Badger Meter designs and sells water meters, flow-measurement instruments, and the radio and software layer (ORION and GALAXY radios, BEACON and OneNetwork software, and the broader BlueEdge portfolio) that turns municipal water systems into connected networks. Xylem was spun out of ITT in 2011 and has become the largest publicly traded pure-play water technology company, operating through four segments: Water Infrastructure (transport and treatment for utilities), Applied Water (pumps and equipment for building and industrial use), Measurement and Control Solutions (smart meters, sensors and the Sensus platform), and Water Solutions and Services (the outsourced treatment and services business built up by the 2023 Evoqua acquisition). 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 BMI or XYL the better stock?

Neither is universally better. XYL is the larger incumbent; BMI 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, BMI or XYL?

On forward P/E (as of August 2026), BMI trades at 27.19x and XYL at 18.89x, so XYL 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 BMI and XYL?

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 BMI vs XYL?

BMI: Near-term results are exposed to the timing of large utility AMI projects and to weaker short-cycle order rates, both of which pressured Q1 2026 revenue and earnings. The stock carries a premium valuation (a P/E in the low-30s), so any growth disappointment can drive sharp multiple compression. Competition is intense from larger and well-capitalized rivals including Xylem (Sensus), Roper (Neptune), Mueller, and Itron, which can pressure pricing and share. Supply-chain costs, tariffs, and component availability can squeeze gross margins, and integration risk accompanies acquisitions like UDlive. Utility budgets and municipal funding cycles add cyclicality to an otherwise steady end market. XYL: Organic growth has been flat in recent quarters even as reported revenue grew, so the premium valuation leaves little room for disappointment if utility or industrial demand slows. A large share of revenue depends on municipal and utility budgets that can be delayed by funding cycles, elections or macro pressure. The company carries acquisition-related debt and goodwill from the Evoqua deal, and integration or synergy shortfalls would weigh on margins. Xylem also has meaningful international exposure, adding currency and regional demand risk. Finally, competition in metering and treatment from focused players can pressure pricing in specific product lines.

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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell BMI or XYL; figures are approximate and dated (as of August 2026). Verify current data before investing.