AWK vs. WMS

Last updated Jun 4, 2026

AWK (American Water Works Company, Inc.) and WMS (Advanced Drainage Systems, Inc.) are both stocks. AWK operates in Utilities - Regulated Water (Utilities), while WMS operates in Building Products & Equipment (Industrials). Over the past 10 years, AWK returned 7.02%/yr vs 19.83%/yr for WMS. At a 0.16 correlation, their price movements are largely independent.

Performance

AWK vs. WMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Water Works Company, Inc. (AWK) and Advanced Drainage Systems, Inc. (WMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AWK achieves a -3.80% return, which is significantly higher than WMS's -8.28% return. Over the past 10 years, AWK has underperformed WMS with an annualized return of 7.02%, while WMS has yielded a comparatively higher 19.83% annualized return.

AWK

• 1D: 0.11%
• 1M: -1.70%
• YTD: -3.80%
• 6M: -4.15%
• 1Y: -10.43%
• 3Y*: -3.02%
• 5Y*: -2.55%
• 10Y*: 7.02%

WMS

• 1D: -2.32%
• 1M: -5.72%
• YTD: -8.28%
• 6M: -12.56%
• 1Y: 20.25%
• 3Y*: 8.79%
• 5Y*: 4.46%
• 10Y*: 19.83%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AWK vs. WMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AWK American Water Works Company, Inc.	-3.80%	7.40%	-3.53%	-11.68%	-17.89%	24.83%	26.88%	37.79%	1.32%	29.01%
WMS Advanced Drainage Systems, Inc.	-8.28%	25.97%	-17.48%	72.44%	-39.53%	63.46%	116.70%	67.74%	2.78%	17.27%

Correlation

The correlation between AWK and WMS is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (10Y) Calculated over the trailing 10-year period	0.17
Correlation (All Time) Calculated using the full available price history since Jul 28, 2014	0.16

The correlation between AWK and WMS shifts across timeframes, from -0.02 (1 year) to 0.18 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AWK : $24.14B WMS : $10.40B
EPS AWK : $5.65 WMS : $5.45
PE Ratio AWK : 21.91 WMS : 24.33
PS Ratio AWK : 4.64 WMS : 3.25
Total Revenue (TTM) AWK : $5.21B WMS : $3.19B
Gross Profit (TTM) AWK : $2.27B WMS : $1.27B
EBITDA (TTM) AWK : $2.48B WMS : $586.61M

Return for Risk

AWK vs. WMS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AWK

AWK Risk / Return Rank: 17
AWK Sharpe Ratio Rank: 19
AWK Sortino Ratio Rank: 18
AWK Omega Ratio Rank: 19
AWK Calmar Ratio Rank: 16
AWK Martin Ratio Rank: 11

WMS

WMS Risk / Return Rank: 57
WMS Sharpe Ratio Rank: 58
WMS Sortino Ratio Rank: 56
WMS Omega Ratio Rank: 52
WMS Calmar Ratio Rank: 58
WMS Martin Ratio Rank: 59

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AWK vs. WMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Water Works Company, Inc. (AWK) and Advanced Drainage Systems, Inc. (WMS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AWK	WMS	Difference
Sharpe ratio Return per unit of total volatility	-0.49	0.52	-1.01
Sortino ratio Return per unit of downside risk	-0.58	1.12	-1.69
Omega ratio Gain probability vs. loss probability	0.94	1.13	-0.19
Calmar ratio Return relative to maximum drawdown	-0.68	0.81	-1.49
Martin ratio Return relative to average drawdown	-1.29	1.99	-3.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AWK vs. WMS - Sharpe Ratio Comparison

The current AWK Sharpe Ratio is -0.49, which is lower than the WMS Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of AWK and WMS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AWK	WMS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.49	0.52	-1.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.11	0.11	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.48	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.50	+0.07

Drawdowns

AWK vs. WMS - Drawdown Comparison

The maximum AWK drawdown since its inception was -37.10%, smaller than the maximum WMS drawdown of -53.58%. Use the drawdown chart below to compare losses from any high point for AWK and WMS.

Drawdown Indicators

	AWK	WMS	Difference
Max Drawdown Largest peak-to-trough decline	-37.10%	-53.58%	+16.48%
Max Drawdown (1Y) Largest decline over 1 year	-15.45%	-24.96%	+9.51%
Max Drawdown (3Y) Largest decline over 3 years	-22.33%	-45.75%	+23.42%
Max Drawdown (5Y) Largest decline over 5 years	-37.10%	-50.12%	+13.02%
Max Drawdown (10Y) Largest decline over 10 years	-37.10%	-53.58%	+16.48%
Current Drawdown Current decline from peak	-27.72%	-25.25%	-2.47%
Average Drawdown Average peak-to-trough decline	-9.48%	-17.89%	+8.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.09%	10.20%	-2.11%

Volatility

AWK vs. WMS - Volatility Comparison

The current volatility for American Water Works Company, Inc. (AWK) is 5.10%, while Advanced Drainage Systems, Inc. (WMS) has a volatility of 10.57%. This indicates that AWK experiences smaller price fluctuations and is considered to be less risky than WMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AWK	WMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.10%	10.57%	-5.47%
Volatility (6M) Calculated over the trailing 6-month period	15.21%	25.53%	-10.32%
Volatility (1Y) Calculated over the trailing 1-year period	21.30%	39.01%	-17.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.87%	42.02%	-19.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.69%	41.62%	-17.93%

Dividends

AWK vs. WMS - Dividend Comparison

AWK's dividend yield for the trailing twelve months is around 2.73%, more than WMS's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AWK American Water Works Company, Inc.	2.73%	2.49%	2.41%	2.10%	1.68%	1.25%	1.40%	1.59%	1.96%	1.77%	2.02%	2.23%
WMS Advanced Drainage Systems, Inc.	0.56%	0.48%	0.54%	0.38%	0.57%	0.31%	0.43%	3.48%	1.28%	1.13%	1.12%	0.79%

Financials

AWK vs. WMS - Profitability Comparison

The chart below illustrates the profitability comparison between American Water Works Company, Inc. and Advanced Drainage Systems, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AWK - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, American Water Works Company, Inc. reported a gross profit of 714.00M and revenue of 1.21B. Therefore, the gross margin over that period was 59.2%.

WMS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Advanced Drainage Systems, Inc. reported a gross profit of 354.44M and revenue of 816.10M. Therefore, the gross margin over that period was 43.4%.

AWK - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, American Water Works Company, Inc. reported an operating income of 391.00M and revenue of 1.21B, resulting in an operating margin of 32.4%.

WMS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Advanced Drainage Systems, Inc. reported an operating income of 53.25M and revenue of 816.10M, resulting in an operating margin of 6.5%.

AWK - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, American Water Works Company, Inc. reported a net income of 196.00M and revenue of 1.21B, resulting in a net margin of 16.2%.

WMS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Advanced Drainage Systems, Inc. reported a net income of 32.90M and revenue of 816.10M, resulting in a net margin of 4.0%.

Frequently Asked Questions

Can I hold both AWK and WMS in my portfolio?

AWK and WMS have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AWK or WMS?

WMS has higher volatility (10.57%) compared to AWK (5.10%). In terms of maximum drawdown, AWK dropped -37.10% vs WMS's -53.58%.

Which has better risk-adjusted returns?

WMS currently has the higher Sharpe Ratio (0.52 vs -0.49), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.