AAON vs Watts Water Technologies
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KIRA’s take AI analyst
I put AAON and Watts Water Technologies side by side, using each one’s latest annual report. Here is what stands out:
- Watts Water Technologies is the larger business, with $2.4B of revenue in fiscal 2025 against $1.4B for AAON, about 1.7 times as much.
- AAON grew revenue faster (20.1%, against 8.3%).
- Watts Water Technologies kept more of each dollar of sales as operating profit (18.4% operating margin, against 10.1%).
- Watts Water Technologies earned a higher return on the capital invested in it (20.5%, against 10.8%).
- Investors pay more for each dollar of AAON’s earnings: a P/E of 36.0x against 32.1x for Watts Water Technologies.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AAON
AAON
3/10
Revenue growth5-year growthShare count change
Watts Water Technologies
WTS
7/10
Gross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AAON FY25 | WTS FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.8B | $12.3B |
| Revenue | $1.4B | $2.4B |
| Free cash flow | — | $356M |
| Net income | $108M | $341M |
| Growth | ||
| Revenue growth | 20.1% | 8.3% |
| 5-year growth | 22.9% | 10.1% |
| Share count change | −0.6% | 0.0% |
| Profitability | ||
| Gross margin | 26.8% | 49.5% |
| Operating margin | 10.1% | 18.4% |
| Net margin | 7.5% | 14.0% |
| FCF margin | — | 14.6% |
| Return on capital | 10.8% | 20.5% |
| Return on equity | 12.5% | 18.3% |
| Balance sheet | ||
| Net debt | $398M | −$205M |
| Net debt / EBITDA | 1.8x | −0.4x |
| Dividends and buybacks | $62.6M | $82.9M |
| Valuation & quality | ||
| P/E | 36.0x | 32.1x |
| Piotroski F-score | 3 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.