Head to Head Review: Zurn Elkay Water Solutions Cor (NYSE:ZWS) and Hayward (NYSE:HAYW)

Hayward (NYSE:HAYW) and Zurn Elkay Water Solutions Cor (NYSE:ZWS) are both mid-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Profitability

This table compares Hayward and Zurn Elkay Water Solutions Cor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	14.35%	11.95%	6.11%
Zurn Elkay Water Solutions Cor	15.91%	18.46%	11.06%

Valuation & Earnings

This table compares Hayward and Zurn Elkay Water Solutions Cor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.12 billion	3.07	$151.57 million	$0.78	21.20
Zurn Elkay Water Solutions Cor	$1.70 billion	4.42	$198.00 million	$1.71	26.52

Zurn Elkay Water Solutions Cor has higher revenue and earnings than Hayward. Hayward is trading at a lower price-to-earnings ratio than Zurn Elkay Water Solutions Cor, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Hayward has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Zurn Elkay Water Solutions Cor has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hayward and Zurn Elkay Water Solutions Cor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	1	6	2	0	2.11
Zurn Elkay Water Solutions Cor	0	4	5	0	2.56

Hayward currently has a consensus target price of $17.12, indicating a potential upside of 3.57%. Zurn Elkay Water Solutions Cor has a consensus target price of $54.67, indicating a potential upside of 20.53%. Given Zurn Elkay Water Solutions Cor’s stronger consensus rating and higher possible upside, analysts clearly believe Zurn Elkay Water Solutions Cor is more favorable than Hayward.

Insider and Institutional Ownership

83.3% of Zurn Elkay Water Solutions Cor shares are owned by institutional investors. 4.7% of Hayward shares are owned by company insiders. Comparatively, 2.4% of Zurn Elkay Water Solutions Cor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Zurn Elkay Water Solutions Cor beats Hayward on 12 of the 14 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures and markets equipment and technology for residential and commercial swimming pools, spas and other aquatic settings. Its products help manage water circulation, filtration, heating, cleaning and treatment. The company’s offerings include pumps, filters, heaters, automatic cleaners, lighting, sanitization systems and controls, as well as connected products that support pool automation. Hayward also serves the broader outdoor-living and wellness markets with equipment for spas and related applications.

About Zurn Elkay Water Solutions Cor

Zurn Elkay Water Solutions Corporation designs and manufactures products for water management, plumbing and drinking-water systems. Its offerings include water safety and flow-control products, drainage and plumbing fixtures, faucets, sinks, water coolers and bottle-filling stations, serving commercial, institutional, industrial and residential applications. The company operates through its Zurn and Elkay brands. Its products are used in settings such as schools, healthcare facilities, businesses, public spaces and homes, with a focus on water efficiency, safety and access to drinking water.