AAON 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 $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 31.3x for Watts Water Technologies.
| Latest fiscal year | AAON · FY25 | WTS · FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.8B | $12.0B |
| 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 | 31.3x |
| Piotroski F-score | 3 | 8 |
Revenue
FY16
AAON $384M
WTS $1.4B
FY17
AAON $405M
WTS $1.5B
FY18
AAON $434M
WTS $1.6B
FY19
AAON $469M
WTS $1.6B
FY20
AAON $515M
WTS $1.5B
FY21
AAON $535M
WTS $1.8B
FY22
AAON $889M
WTS $2.0B
FY23
AAON $1.2B
WTS $2.1B
FY24
AAON $1.2B
WTS $2.3B
FY25
AAON $1.4B
WTS $2.4B
AAON
WTS
Operating margin
FY16
AAON 20.7%
WTS 10.4%
FY17
AAON 18.3%
WTS 11.1%
FY18
AAON 12.8%
WTS 12.0%
FY19
AAON 14.3%
WTS 12.3%
FY20
AAON 19.8%
WTS 12.0%
FY21
AAON 13.0%
WTS 13.2%
FY22
AAON 14.3%
WTS 15.9%
FY23
AAON 19.5%
WTS 17.1%
FY24
AAON 17.4%
WTS 17.3%
FY25
AAON 10.1%
WTS 18.4%
AAON
WTS
Free cash flow
FY16
AAON $37.3M
WTS $102M
FY17
AAON $16.3M
WTS $127M
FY18
AAON $17.6M
WTS $134M
FY19
AAON $60.8M
WTS $165M
FY20
AAON $61.0M
WTS $185M
FY21
AAON $5.8M
WTS $154M
FY22
AAON $7.3M
WTS $196M
FY23
AAON —
WTS $281M
FY24
AAON —
WTS $326M
FY25
AAON —
WTS $356M
AAON
WTS
Return on capital
FY16
AAON —
WTS 9.4%
FY17
AAON —
WTS 7.9%
FY18
AAON —
WTS 13.2%
FY19
AAON —
WTS 13.3%
FY20
AAON —
WTS 11.7%
FY21
AAON 15.2%
WTS 15.9%
FY22
AAON 18.1%
WTS 23.2%
FY23
AAON 25.9%
WTS 20.2%
FY24
AAON 19.5%
WTS 19.7%
FY25
AAON 10.8%
WTS 20.5%
AAON
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.