WallStSmart

Eaton Corporation PLC (ETN)vsWatts Water Technologies Inc (WTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eaton Corporation PLC generates 1026% more annual revenue ($27.45B vs $2.44B). ETN leads profitability with a 14.9% profit margin vs 14.0%. ETN appears more attractively valued with a PEG of 2.64. ETN earns a higher WallStSmart Score of 61/100 (C+).

ETN

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 5.3Quality: 5.0
Piotroski: 4/9

WTS

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 7.5Value: 7.3Quality: 7.8
Piotroski: 6/9Altman Z: 4.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ETNFair Value (-2.4%)

Margin of Safety

-2.4%

Fair Value

$386.70

Current Price

$375.00

$11.70 premium

UndervaluedFair: $386.70Overvalued
WTSUndervalued (+31.9%)

Margin of Safety

+31.9%

Fair Value

$462.26

Current Price

$297.79

$164.47 discount

UndervaluedFair: $462.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETN4 strengths · Avg: 8.5/10
Market CapQuality
$145.30B9/10

Large-cap with strong market position

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

WTS3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
4.1610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

EPS GrowthGrowth
23.8%8/10

Earnings expanding 23.8% YoY

Areas to Watch

ETN2 concerns · Avg: 3.0/10
P/E RatioValuation
35.8x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.642/10

Expensive relative to growth rate

WTS2 concerns · Avg: 3.0/10
P/E RatioValuation
29.0x4/10

Moderate valuation

PEG RatioValuation
3.082/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ETN

The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : WTS

The strongest argument for WTS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : ETN

The primary concerns for ETN are P/E Ratio, PEG Ratio.

Bear Case : WTS

The primary concerns for WTS are P/E Ratio, PEG Ratio.

Key Dynamics to Monitor

ETN profiles as a value stock while WTS is a growth play — different risk/reward profiles.

WTS carries more volatility with a beta of 1.23 — expect wider price swings.

WTS is growing revenue faster at 15.7% — sustainability is the question.

ETN generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

ETN scores higher overall (61/100 vs 58/100) and 13.1% revenue growth. WTS offers better value entry with a 31.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Eaton Corporation PLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.

Watts Water Technologies Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.

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