Simpson Manufacturing vs Watts Water Technologies
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The short version
- Watts Water Technologies is the larger business, with $2.4B of revenue in fiscal 2025 against $2.3B for Simpson Manufacturing.
- Watts Water Technologies grew revenue faster (8.3%, against 4.5%).
- Simpson Manufacturing kept more of each dollar of sales as operating profit (19.6% operating margin, against 18.4%).
- Watts Water Technologies turned more of its sales into free cash flow (14.6% FCF margin, against 12.8%).
- Watts Water Technologies earned a higher return on the capital invested in it (20.5%, against 17.5%).
- Investors pay more for each dollar of Watts Water Technologies’s earnings: a P/E of 31.3x against 20.1x for Simpson Manufacturing.
| Latest fiscal year | SSD · FY25 | WTS · FY25 |
|---|---|---|
| Size | ||
| Market cap | $7.6B | $12.0B |
| Revenue | $2.3B | $2.4B |
| Free cash flow | $298M | $356M |
| Net income | $345M | $341M |
| Growth | ||
| Revenue growth | 4.5% | 8.3% |
| 5-year growth | 13.0% | 10.1% |
| Share count change | −1.2% | 0.0% |
| Profitability | ||
| Gross margin | 45.9% | 49.5% |
| Operating margin | 19.6% | 18.4% |
| Net margin | 14.8% | 14.0% |
| FCF margin | 12.8% | 14.6% |
| Return on capital | 17.5% | 20.5% |
| Return on equity | 18.0% | 18.3% |
| Balance sheet | ||
| Net debt | −$84.1M | −$205M |
| Net debt / EBITDA | −0.2x | −0.4x |
| Dividends and buybacks | $168M | $82.9M |
| Valuation & quality | ||
| P/E | 20.1x | 31.3x |
| Piotroski F-score | 8 | 8 |
Revenue
FY16
SSD $861M
WTS $1.4B
FY17
SSD $977M
WTS $1.5B
FY18
SSD $1.1B
WTS $1.6B
FY19
SSD $1.1B
WTS $1.6B
FY20
SSD $1.3B
WTS $1.5B
FY21
SSD $1.6B
WTS $1.8B
FY22
SSD $2.1B
WTS $2.0B
FY23
SSD $2.2B
WTS $2.1B
FY24
SSD $2.2B
WTS $2.3B
FY25
SSD $2.3B
WTS $2.4B
SSD
WTS
Operating margin
FY16
SSD 16.4%
WTS 10.4%
FY17
SSD 14.2%
WTS 11.1%
FY18
SSD 16.0%
WTS 12.0%
FY19
SSD 16.0%
WTS 12.3%
FY20
SSD 19.9%
WTS 12.0%
FY21
SSD 23.4%
WTS 13.2%
FY22
SSD 21.7%
WTS 15.9%
FY23
SSD 21.5%
WTS 17.1%
FY24
SSD 19.3%
WTS 17.3%
FY25
SSD 19.6%
WTS 18.4%
SSD
WTS
Free cash flow
FY16
SSD $57.0M
WTS $102M
FY17
SSD $61.0M
WTS $127M
FY18
SSD $131M
WTS $134M
FY19
SSD $173M
WTS $165M
FY20
SSD $175M
WTS $185M
FY21
SSD $108M
WTS $154M
FY22
SSD $337M
WTS $196M
FY23
SSD $338M
WTS $281M
FY24
SSD $158M
WTS $326M
FY25
SSD $298M
WTS $356M
SSD
WTS
Return on capital
FY16
SSD —
WTS 9.4%
FY17
SSD —
WTS 7.9%
FY18
SSD 17.9%
WTS 13.2%
FY19
SSD —
WTS 13.3%
FY20
SSD —
WTS 11.7%
FY21
SSD —
WTS 15.9%
FY22
SSD —
WTS 23.2%
FY23
SSD 22.0%
WTS 20.2%
FY24
SSD 17.7%
WTS 19.7%
FY25
SSD 17.5%
WTS 20.5%
SSD
WTS
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.