WTRG vs WTS: How Essential Utilities and Watts Water Technologies supplies products that manage the flow of fluids and energy into Compare (2026)

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.

Reading it: WTRG 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.

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. WTRG and WTS 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 WTRG and WTS 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.

Essential Utilities, based in Bryn Mawr, Pennsylvania and formerly known as Aqua America, is one of the largest publicly traded regulated water and wastewater companies in the United States. Through its Aqua brand it serves roughly 5.5 million water and wastewater customers across nine states, and through its Peoples brand it delivers natural gas to about 747,000 customers concentrated in western Pennsylvania. Earnings come almost entirely from regulated rates, so growth is driven by heavy infrastructure spending (about $1.4 billion invested in 2025) that expands the rate base regulators allow it to earn a return on.

Full WTRG guide

Watts Water Technologies supplies products that manage the flow of fluids and energy into, through, and out of buildings: backflow preventers, pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak-detection systems, commercial washroom and hydration solutions, and increasingly smart, connected water controls. It sells across the Americas, Europe, and Asia-Pacific and Middle East and Africa, largely into the plumbing, HVAC, and building-safety channels, where much of the demand is non-discretionary repair, replacement, and code-driven installation.

Full WTS guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• WTRG drivers: Pending American Water merger; Rate-base growth from infrastructure spending.
• WTS drivers: Non-discretionary replacement and code demand; Data-center and smart-water tailwinds.

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 largest single risk is merger-specific: if remaining regulatory approvals are delayed, conditioned, or denied, WTRG would revert to trading on its standalone fundamentals, and the merger agreement carries termination fees ($370 million potentially payable by Essential, $835 million by American Water under specified circumstances). For WTS, watts is exposed to commercial and residential construction and renovation activity, so a downturn in building spend or higher-for-longer interest rates could pressure volumes.

Pick WTRG if you believe its drivers more; WTS 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 WTRG and WTS guides.

WTRG. WTRG trades like a regulated utility, valued on stable earnings and its dividend rather than rapid growth, and full-year 2025 revenue rose about 19 percent to roughly $2.5 billion, helped by rate recoveries and higher gas costs. With the American Water merger approved by shareholders, the stock's valuation increasingly reflects the fixed 0.305 exchange ratio and the roughly Q1 2027 expected close. Reported quarterly EPS can swing on non-recurring items and merger-related expenses, so headline comparisons should be read carefully.

WTS. Watts posted record first-quarter 2026 results with revenue near $677 million, up about 21 percent year over year, and diluted EPS of roughly $2.97, both ahead of estimates on data-center demand and pricing. For full-year 2026 the company guided to reported sales growth of about 8 to 12 percent, organic growth of 2 to 6 percent, and adjusted operating margin near 19 to 20 percent. At a mid-20s trailing P/E and a sub-1 percent yield, the shares are priced as a quality compounder rather than a value name.

Headline figures (approximate, JULY 2026): WTRG shows revenue (fy2025) ~$2.5B, net income (fy2025) ~$616M, eps (fy2025) ~$2.20, market cap ~$11B; WTS shows revenue (ttm) ~$2.6B, q1 2026 revenue ~$677M (up ~21% YoY), q1 2026 diluted eps ~$2.97 (adj ~$3.04), market cap ~$10B.

WTRG and WTS 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 WTRG and WTS exposure against your real portfolio. It is not an investment adviser.