WTS vs. TREX
WTS (Watts Water Technologies, Inc.) and TREX (Trex Company, Inc.) are both stocks. Both are in the Industrials sector — WTS in Specialty Industrial Machinery, TREX in Building Products & Equipment. Over the past 10 years, WTS returned 20.25%/yr vs 16.02%/yr for TREX. At a 0.38 correlation, their price movements are largely independent.
Performance
WTS vs. TREX - Performance Comparison
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Returns By Period
In the year-to-date period, WTS achieves a 21.12% return, which is significantly lower than TREX's 30.07% return. Over the past 10 years, WTS has outperformed TREX with an annualized return of 20.25%, while TREX has yielded a comparatively lower 16.02% annualized return.
WTS
- 1D
- 3.81%
- 1M
- 11.26%
- YTD
- 21.12%
- 6M
- 19.78%
- 1Y
- 38.75%
- 3Y*
- 24.54%
- 5Y*
- 19.38%
- 10Y*
- 20.25%
TREX
- 1D
- -1.53%
- 1M
- 20.14%
- YTD
- 30.07%
- 6M
- 30.07%
- 1Y
- -20.07%
- 3Y*
- -8.67%
- 5Y*
- -14.60%
- 10Y*
- 16.02%
WTS vs. TREX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WTS Watts Water Technologies, Inc. | 21.12% | 36.85% | -1.62% | 43.57% | -24.08% | 60.63% | 23.14% | 56.20% | -14.13% | 17.84% |
TREX Trex Company, Inc. | 30.07% | -49.18% | -16.62% | 95.58% | -68.65% | 61.29% | 86.29% | 51.42% | 9.53% | 68.31% |
Correlation
The correlation between WTS and TREX is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.55 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Apr 8, 1999 | 0.38 |
The correlation between WTS and TREX shifts across timeframes, from 0.38 (all time) to 0.55 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
WTS:
$11.16B
TREX:
$4.80B
WTS:
$10.95
TREX:
$1.80
WTS:
30.43
TREX:
25.41
WTS:
1.42
TREX:
69.84
WTS:
4.36
TREX:
4.13
WTS:
5.32
TREX:
4.82
WTS:
$2.56B
TREX:
$1.18B
WTS:
$1.26B
TREX:
$461.26M
WTS:
$556.30M
TREX:
$308.51M
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Return for Risk
WTS vs. TREX — Risk / Return Rank
WTS
TREX
WTS vs. TREX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Watts Water Technologies, Inc. (WTS) and Trex Company, Inc. (TREX). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| WTS | TREX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.09 | ||
| Sortino ratioReturn per unit of downside risk | +2.65 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 0.97 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 2.52 | -0.36 | +2.88 |
| Martin ratioReturn relative to average drawdown | 6.51 | -0.57 | +7.07 |
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Drawdowns
WTS vs. TREX - Drawdown Comparison
The maximum WTS drawdown since its inception was -63.68%, smaller than the maximum TREX drawdown of -90.53%. Use the drawdown chart below to compare losses from any high point for WTS and TREX.
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Drawdown Indicators
| WTS | TREX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.68% | -90.53% | +26.85% |
Max Drawdown (1Y)Largest decline over 1 year | -15.45% | -56.01% | +40.56% |
Max Drawdown (3Y)Largest decline over 3 years | -19.54% | -69.90% | +50.36% |
Max Drawdown (5Y)Largest decline over 5 years | -44.08% | -78.58% | +34.50% |
Max Drawdown (10Y)Largest decline over 10 years | -44.08% | -78.58% | +34.50% |
Current DrawdownCurrent decline from peak | -0.55% | -67.56% | +67.01% |
Average DrawdownAverage peak-to-trough decline | -16.19% | -38.76% | +22.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.97% | 35.58% | -29.61% |
Volatility
WTS vs. TREX - Volatility Comparison
The current volatility for Watts Water Technologies, Inc. (WTS) is 7.01%, while Trex Company, Inc. (TREX) has a volatility of 15.84%. This indicates that WTS experiences smaller price fluctuations and is considered to be less risky than TREX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WTS | TREX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.01% | 15.84% | -8.83% |
Volatility (6M)Calculated over the trailing 6-month period | 16.66% | 28.22% | -11.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.03% | 51.26% | -28.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.84% | 47.34% | -19.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.24% | 46.46% | -18.22% |
Dividends
WTS vs. TREX - Dividend Comparison
WTS's dividend yield for the trailing twelve months is around 0.66%, while TREX has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TREX Trex Company, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
WTS Watts Water Technologies, Inc. | 0.66% | 0.72% | 0.81% | 0.66% | 0.79% | 0.52% | 0.76% | 0.90% | 1.27% | 0.99% | 1.09% | 1.33% |
Financials
WTS vs. TREX - Financials Comparison
This section allows you to compare key financial metrics between Watts Water Technologies, Inc. and Trex Company, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
WTS vs. TREX - Profitability Comparison
WTS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Watts Water Technologies, Inc. reported a gross profit of 326.10M and revenue of 677.30M. Therefore, the gross margin over that period was 48.2%.
TREX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Trex Company, Inc. reported a gross profit of 139.02M and revenue of 343.40M. Therefore, the gross margin over that period was 40.5%.
WTS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Watts Water Technologies, Inc. reported an operating income of 133.00M and revenue of 677.30M, resulting in an operating margin of 19.6%.
TREX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Trex Company, Inc. reported an operating income of 83.51M and revenue of 343.40M, resulting in an operating margin of 24.3%.
WTS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Watts Water Technologies, Inc. reported a net income of 99.60M and revenue of 677.30M, resulting in a net margin of 14.7%.
TREX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Trex Company, Inc. reported a net income of 61.40M and revenue of 343.40M, resulting in a net margin of 17.9%.
Frequently Asked Questions
WTS and TREX have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TREX has higher volatility (15.84%) compared to WTS (7.01%). In terms of maximum drawdown, WTS dropped -63.68% vs TREX's -90.53%.
WTS currently has the higher Sharpe Ratio (1.69 vs -0.39), 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.
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