WTS vs ZWS: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 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.

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. WTS and ZWS 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 WTS and ZWS 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.

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

Zurn Elkay Water Solutions (NYSE: ZWS) designs and manufactures water safety, control, flow, hygienic, and filtered drinking water products used in commercial, institutional, municipal, healthcare, and industrial buildings. The company was formed by the 2022 combination of Zurn Water Solutions and Elkay Manufacturing, and it sells under brands including Zurn, Elkay, Wilkins, Halsey Taylor, World Dryer, and Green Turtle. Its portfolio spans drinking fountains and bottle fillers, backflow preventers, trench and roof drains, faucets, and sensor-based hygiene products, giving it broad exposure to the plumbing content inside nonresidential structures.

Full ZWS guide

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

• WTS drivers: Non-discretionary replacement and code demand; Data-center and smart-water tailwinds.
• ZWS drivers: Water-focused secular demand; Margin expansion and synergies.

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: 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. For ZWS, zWS trades at a premium price-to-earnings multiple, so any slowdown in growth or margin momentum could pressure the stock.

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 WTS if you believe its drivers more; ZWS 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 WTS and ZWS guides.

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.

ZWS. ZWS delivered roughly $433 million of revenue in Q1 2026, up about 11 percent, with adjusted EBITDA margins near 27 percent and net leverage around 0.5 times. Trailing revenue sits near $1.74 billion and the company generates steady free cash flow. The stock trades at a premium multiple in the high-30s on earnings, reflecting its water-focused growth and margin profile.

Headline figures (approximate, JULY 2026): 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; ZWS shows revenue (ttm) ~$1.74B, q1 2026 revenue ~$433M (+11% YoY), adjusted ebitda margin ~27%, adjusted eps (q1 2026) ~$0.41.

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