Xylem (NYSE:XYL) and Enviri (NYSE:NVRI) Financial Review

Xylem (NYSE:XYL) and Enviri (NYSE:NVRI) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Xylem and Enviri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xylem	10.74%	10.33%	6.72%
Enviri	-7.02%	-7.86%	-1.33%

Valuation & Earnings

This table compares Xylem and Enviri”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylem	$8.73 billion	4.01	$890.00 million	$3.85	37.37
Enviri	$2.34 billion	0.43	-$127.97 million	($1.96)	-6.41

Xylem has higher revenue and earnings than Enviri. Enviri is trading at a lower price-to-earnings ratio than Xylem, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Xylem has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Enviri has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Institutional & Insider Ownership

88.0% of Xylem shares are held by institutional investors. Comparatively, 93.4% of Enviri shares are held by institutional investors. 0.3% of Xylem shares are held by company insiders. Comparatively, 2.5% of Enviri shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Xylem and Enviri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylem	0	5	7	1	2.69
Enviri	0	1	0	0	2.00

Xylem presently has a consensus price target of $152.33, suggesting a potential upside of 5.89%. Enviri has a consensus price target of $10.00, suggesting a potential downside of 20.39%. Given Xylem’s stronger consensus rating and higher possible upside, research analysts plainly believe Xylem is more favorable than Enviri.

Summary

Xylem beats Enviri on 12 of the 15 factors compared between the two stocks.

About Xylem

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue, and Flojet brands. The Measurement & Control Solutions segment offers smart meters, networked communication devices, data analytics, test equipment, controls, sensor devices, software and managed services, and critical infrastructure services; and software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment. This segment sells its products under the Pure Technologies, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brands. The Integrated Solutions and Services segment provides maintenance services, mobile services, digital outsourced solutions, wastewater systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, ion exchange, and deionization under Aquapro, WaterOne, and Ion Pure brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. Xylem Inc. was incorporated in 2011 and is headquartered in Washington, District of Columbia.

About Enviri

Enviri Corporation provides environmental solutions for industrial and specialty waste streams in the United States and internationally. The company operates through two segments: Harsco Environmental and Clean Earth. The Harsco Environmental segment offers on-site services under long-term contracts for material logistics, product quality improvement, and resource recovery for iron, steel, and metals manufacturing; manufactures and sells industrial abrasives, roofing granules, aluminum dross, and scrap processing systems; and meltshop and furnace services, such as under-vessel cleaning, removal of ladle slag, and general melt shop debris. This segment also produces and sells value-added downstream products from industrial waste-stream, including road surfacing and materials, such as slag-based asphalt product under the SteelPhal brand; abrasives and roofing materials under the BLACK BEAUTY and SURE/CUT brand names; Metallurgical Additives; agriculture and turf products comprising soil conditioners and fertilizers under the CrossOver and AgrowSil brands; and cement additives. The Clean Earth segment provides specialty waste processing, treatment, recycling, and beneficial reuse solutions for waste needs, such as hazardous, non-hazardous, and contaminated soils and dredged materials to industrial, retail, healthcare, and construction industries. The company was formerly known as Harsco Corporation and changed its name to Enviri Corporation in June 2023. The company was founded in 1853 and is headquartered in Philadelphia, Pennsylvania.