Home > Comparison > Industrials > HWM vs PNR
The strategic rivalry between Howmet Aerospace Inc. and Pentair plc shapes the industrial machinery sector’s competitive landscape. Howmet Aerospace operates as a capital-intensive aerospace parts manufacturer with a global footprint. Pentair focuses on high-margin water treatment and fluid management solutions. This analysis contrasts their distinct operational models to reveal which company offers superior risk-adjusted returns for a well-diversified industrial portfolio in 2026.
Table of contents
Companies Overview
Howmet Aerospace and Pentair plc hold significant roles in the industrial machinery sector, each targeting distinct market needs.
Howmet Aerospace Inc.: Advanced Aerospace Engineering Leader
Howmet Aerospace dominates the aerospace and transportation markets with its engine products and fastening systems. It generates revenue by supplying airfoils, forged wheels, and engineered structures globally. In 2026, its strategic focus centers on expanding advanced materials and aerospace component innovation to maintain its edge in high-performance engineered solutions.
Pentair plc: Global Water Solutions Provider
Pentair specializes in delivering water treatment and fluid management technologies worldwide. Its revenue streams stem from residential pool equipment and industrial fluid filtration systems. In 2026, Pentair emphasizes enhancing sustainable water solutions and expanding its portfolio in filtration and fluid handling to capture growing environmental and municipal demands.
Strategic Collision: Similarities & Divergences
Both companies compete in industrial machinery but serve divergent markets—Howmet targets aerospace with a high-precision manufacturing model, while Pentair focuses on water and fluid technologies with broad applications. The main battleground lies in their ability to innovate complex engineered products versus sustainable infrastructure solutions. Their distinct profiles appeal to investors valuing aerospace advanced materials or environmental technology growth.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Howmet Aerospace Inc. (HWM) | Pentair plc (PNR) |
|---|---|---|
| Revenue | 8.25B | 4.18B |
| Cost of Revenue | 5.72B | 2.49B |
| Operating Expenses | 407M | 833M |
| Gross Profit | 2.54B | 1.69B |
| EBITDA | 2.41B | 944M |
| EBIT | 2.13B | 826M |
| Interest Expense | 151M | 69M |
| Net Income | 1.51B | 654M |
| EPS | 3.73 | 3.99 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison uncovers which company operates with greater efficiency and delivers stronger profitability momentum.
Howmet Aerospace Inc. Analysis
Howmet Aerospace drives robust growth, with 2025 revenue reaching $8.25B, up 11% year-over-year. Net income soared 17.6%, hitting $1.51B, reflecting excellent margin expansion. Gross margin stands at a healthy 30.7%, while net margin improves to 18.3%. The company’s EBIT margin of 25.8% signals rising operational efficiency and strong earnings momentum.
Pentair plc Analysis
Pentair’s revenue in 2025 grew modestly by 2.3% to $4.18B, with net income climbing 4.6% to $654M. The firm maintains a superior gross margin at 40.5%, though net margin trails at 15.7%. EBIT margin is 19.8%, suggesting solid but slower operational leverage gains. Pentair’s growth pace and margin improvements show steadier, less aggressive momentum.
Verdict: High Growth Efficiency vs. Margin Stability
Howmet Aerospace outpaces Pentair in revenue growth and net income expansion, with stronger margin gains and operational efficiency. Pentair offers a higher gross margin but lags in bottom-line growth. For investors prioritizing dynamic earnings growth and improving profitability, Howmet presents a more compelling profile. Pentair suits those valuing stable margins and steady returns.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies analyzed:
| Ratios | Howmet Aerospace Inc. (HWM) | Pentair plc (PNR) |
|---|---|---|
| ROE | 28.17% | 16.90% |
| ROIC | 18.19% | 12.46% |
| P/E | 54.93 | 26.14 |
| P/B | 15.47 | 4.42 |
| Current Ratio | 2.13 | 1.61 |
| Quick Ratio | 1.09 | 0.95 |
| D/E | 0.57 | 0.42 |
| Debt-to-Assets | 27.28% | 23.86% |
| Interest Coverage | 14.11 | 12.36 |
| Asset Turnover | 0.74 | 0.61 |
| Fixed Asset Turnover | 3.18 | 11.08 |
| Payout ratio | 12.00% | 25.13% |
| Dividend yield | 0.22% | 0.96% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios form the company’s DNA, uncovering operational strengths, valuation signals, and latent risks crucial for investment decisions.
Howmet Aerospace Inc.
Howmet Aerospace commands a robust 28.2% ROE and a strong 18.3% net margin, reflecting operational excellence. However, its P/E at 54.9 and P/B at 15.5 mark the stock as expensive and stretched. Dividend yield is low at 0.22%, suggesting limited payouts and a focus on reinvestment.
Pentair plc
Pentair delivers a solid 16.9% ROE with a 15.7% net margin, signaling efficient profitability. Its P/E of 26.1 and P/B of 4.4 still appear elevated but less stretched than Howmet’s. Dividend yield stands at 0.96%, indicating moderate shareholder returns alongside steady operational performance.
Premium Valuation vs. Operational Safety
Both companies share a favorable ratio profile, but Howmet’s higher profitability contrasts with its steep valuation. Pentair offers a more balanced risk-reward with reasonable valuation and dividends. Investors seeking growth may lean toward Howmet, while those favoring stability may prefer Pentair.
Which one offers the Superior Shareholder Reward?
I see Howmet Aerospace Inc. (HWM) and Pentair plc (PNR) pursue distinct shareholder reward strategies. HWM yields a modest 0.22% dividend with a conservative 12% payout ratio, emphasizing share buybacks to bolster total returns. PNR delivers a robust 0.96% dividend yield, paying out 25% of earnings, supported by strong free cash flow coverage and consistent buybacks. Historically in industrials, higher dividend yield combined with sustainable payout and active buybacks signals more attractive total returns. I find PNR’s balanced dividend and buyback approach more sustainable and rewarding in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Howmet Aerospace Inc. and Pentair plc, highlighting their core financial strengths and weaknesses:
Howmet Aerospace excels in return on equity and assets with top scores of 5, signaling operational efficiency. Pentair offers a more balanced profile with moderate DCF and valuation scores, though both share weak debt-to-equity positions. Howmet’s valuation scores lag significantly, indicating potential overvaluation risk, while Pentair manages slightly better pricing metrics.
Bankruptcy Risk: Solvency Showdown
Howmet Aerospace’s Altman Z-Score of 12.4 vastly outperforms Pentair’s 4.3, placing both in the safe zone but showing Howmet as far more resilient to financial distress in this cycle:
Financial Health: Quality of Operations
Both firms score an 8 on the Piotroski F-Score, reflecting very strong financial health. Neither shows red flags in profitability, leverage, or liquidity metrics, affirming solid operational fundamentals:
How are the two companies positioned?
This section dissects the operational DNA of Howmet Aerospace (HWM) and Pentair (PNR) by comparing their revenue distribution by segment and internal strengths and weaknesses. The final objective is to confront their economic moats to determine which business model offers the most resilient and sustainable competitive advantage in today’s market.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Howmet Aerospace Inc. and Pentair plc diversify their income streams and where their primary sector bets lie:
Howmet Aerospace anchors revenue in its Engine Products Segment with $4.3B in 2025, while Fastening Systems trails at $1.7B. This signals moderate concentration but a clear aerospace focus. Pentair shows a more balanced mix: Industrial & Flow Technologies at $1.5B, Pool at $1.4B, and Water Unit at $1.1B in 2024. Pentair’s diversified streams reduce concentration risk, unlike Howmet’s reliance on aerospace engine products.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Howmet Aerospace Inc. and Pentair plc:
Howmet Aerospace Inc. Strengths
- High net margin of 18.27%
- Strong ROE at 28.17%
- Favorable ROIC of 18.19%
- Solid current and quick ratios
- Diverse aerospace product segments
- Significant US revenue base
Pentair plc Strengths
- Favorable net margin of 15.66%
- ROE at a respectable 16.9%
- Favorable ROIC of 12.46%
- Lower debt-to-equity ratio
- Strong fixed asset turnover
- Diversified water and industrial solutions
Howmet Aerospace Inc. Weaknesses
- Elevated PE ratio at 54.93
- High PB ratio at 15.47
- Low dividend yield of 0.22%
- Moderate debt-to-equity ratio
- Asset turnover neutral
- Limited geographic diversification outside US
Pentair plc Weaknesses
- PE ratio of 26.14 still high
- PB ratio of 4.42 unfavorable
- Dividend yield below 1%
- Quick ratio slightly below 1
- Asset turnover neutral
- Moderate exposure to developing countries
Howmet Aerospace demonstrates strong profitability metrics and liquidity, supported by a large, predominantly US-based aerospace business. Pentair shows solid operational efficiency and better debt management, with a more diversified product and geographic footprint. Both face valuation concerns and modest dividend yields, which should inform their capital allocation strategies.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the sole shield protecting long-term profits from relentless competitive erosion. Here’s how Howmet Aerospace and Pentair stack up:
Howmet Aerospace Inc.: Engineering Scale & Innovation Moat
Howmet’s moat stems from advanced engineering and scale in aerospace components. It shows high ROIC well above WACC and margin stability. Its expanding product lines in aerospace deepen this moat in 2026.
Pentair plc: Water Solutions Niche with Margin Pressure
Pentair relies on specialized water filtration and treatment systems, a narrower niche than Howmet’s aerospace scale. Its ROIC exceeds WACC but declines, signaling margin pressure. Expansion into developing markets could offset this in 2026.
Verdict: Engineering Scale vs. Niche Specialization
Howmet Aerospace commands a wider, deeper moat with growing ROIC and robust margin expansion. Pentair creates value but faces shrinking profitability. Howmet is better equipped to defend and grow its market share.
Which stock offers better returns?
The past year shows stark contrasts: Howmet Aerospace Inc. surged with strong acceleration, while Pentair plc posted modest gains and recent deceleration in price movement. Trading volumes reveal buyer dominance in Howmet and seller pressure in Pentair.
Trend Comparison
Howmet Aerospace’s stock gained 267.42% over the past year, displaying a clear bullish trend with accelerating momentum and a high volatility level indicated by a 48.78 standard deviation.
Pentair’s stock rose 20.76% over the same period, also bullish but with decelerating momentum and lower volatility marked by a 10.6 standard deviation; recent months showed a slight bearish correction.
Howmet Aerospace outperformed Pentair significantly, delivering the highest market returns with accelerating price gains, while Pentair faced recent selling pressure and deceleration.
Target Prices
Analysts present a bullish consensus for Howmet Aerospace and Pentair plc, indicating potential upside from current levels.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Howmet Aerospace Inc. | 209 | 290 | 259.63 |
| Pentair plc | 90 | 135 | 118.56 |
Howmet Aerospace’s consensus target of 260 exceeds its current price of 250, suggesting modest appreciation. Pentair’s target consensus at 119 also implies upside from its 101 price, reflecting positive analyst sentiment.
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How do institutions grade them?
The following tables summarize recent institutional grades for Howmet Aerospace Inc. and Pentair plc:
Howmet Aerospace Inc. Grades
This table lists recent grade actions issued by major financial institutions for Howmet Aerospace Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Positive | 2026-02-13 |
| Citigroup | Maintain | Buy | 2026-01-13 |
| B of A Securities | Maintain | Buy | 2025-11-14 |
| JP Morgan | Maintain | Overweight | 2025-11-10 |
| BTIG | Maintain | Buy | 2025-11-03 |
| Goldman Sachs | Maintain | Buy | 2025-11-03 |
| TD Cowen | Maintain | Buy | 2025-10-31 |
| RBC Capital | Maintain | Outperform | 2025-10-31 |
| UBS | Maintain | Neutral | 2025-10-31 |
| Truist Securities | Maintain | Buy | 2025-10-15 |
Pentair plc Grades
This table lists recent grade actions issued by major financial institutions for Pentair plc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-02-04 |
| Oppenheimer | Maintain | Outperform | 2026-02-04 |
| JP Morgan | Maintain | Overweight | 2026-01-16 |
| Citigroup | Maintain | Buy | 2026-01-12 |
| BNP Paribas Exane | Downgrade | Underperform | 2026-01-07 |
| TD Cowen | Downgrade | Sell | 2026-01-05 |
| Jefferies | Upgrade | Buy | 2025-12-10 |
| Barclays | Downgrade | Equal Weight | 2025-12-04 |
| Oppenheimer | Maintain | Outperform | 2025-11-20 |
| RBC Capital | Maintain | Outperform | 2025-10-22 |
Which company has the best grades?
Howmet Aerospace consistently receives predominantly positive grades, mostly Buy and Outperform. Pentair shows more mixed opinions, with recent downgrades to Underperform and Sell. Investors may view Howmet’s stable positive momentum as a sign of stronger institutional confidence.
Risks specific to each company
In 2026, these categories identify critical pressure points and systemic threats facing Howmet Aerospace Inc. and Pentair plc in a complex industrial machinery market environment:
1. Market & Competition
Howmet Aerospace Inc.
- Strong aerospace focus exposes Howmet to cyclical defense and commercial aviation demand shifts.
Pentair plc
- Pentair’s diversified water solutions face intense competition but tap into steady infrastructure and environmental trends.
2. Capital Structure & Debt
Howmet Aerospace Inc.
- Moderate leverage with D/E at 0.57; interest coverage robust at 14.11 times, indicating manageable debt risk.
Pentair plc
- Lower leverage at D/E 0.42 and solid interest coverage of 11.9 times suggest a conservative capital structure.
3. Stock Volatility
Howmet Aerospace Inc.
- Beta at 1.25 indicates moderate sensitivity to market swings, typical for industrial machinery stocks.
Pentair plc
- Beta of 1.22 shows similar market volatility exposure, slightly less than Howmet but still above market average.
4. Regulatory & Legal
Howmet Aerospace Inc.
- Aerospace sector faces stringent regulatory compliance and export controls across multiple geographies.
Pentair plc
- Water treatment industry subject to evolving environmental regulations, potentially increasing compliance costs.
5. Supply Chain & Operations
Howmet Aerospace Inc.
- Complex global supply chain with critical raw materials for aerospace alloys may face disruption risks.
Pentair plc
- Operations depend on reliable sourcing of specialized components; global logistics volatility remains a concern.
6. ESG & Climate Transition
Howmet Aerospace Inc.
- Increasing pressure to reduce carbon footprint in aerospace manufacturing; transition costs are significant.
Pentair plc
- ESG focus aligns with water sustainability trends, but regulatory scrutiny on chemical use may rise.
7. Geopolitical Exposure
Howmet Aerospace Inc.
- Exposure to US, EU, and Asian markets subjects Howmet to trade tensions and geopolitical disruptions.
Pentair plc
- Pentair’s UK base and global footprint expose it to Brexit-related uncertainties and regional trade risks.
Which company shows a better risk-adjusted profile?
Howmet Aerospace’s biggest risk lies in market cyclicality and aerospace regulatory complexity. Pentair’s key risk centers on regulatory shifts in environmental standards and supply chain reliability. Both show solid financial health with Altman Z-scores in the safe zone. However, Pentair’s lower leverage and diversified product base offer a marginally better risk-adjusted profile. Notably, Howmet’s valuation multiples remain elevated, flagging caution despite operational strength.
Final Verdict: Which stock to choose?
Howmet Aerospace Inc. (HWM) wields unmatched capital efficiency, generating strong returns well above its cost of capital. Its ability to compound value through growing ROIC signals a durable competitive edge. A point of vigilance remains its elevated valuation multiples, which could temper near-term upside. HWM suits aggressive growth portfolios seeking high-quality industrial exposure.
Pentair plc (PNR) benefits from a strategic moat rooted in steady asset turnover and solid recurring free cash flows. While its profitability growth lags HWM’s pace, PNR offers comparatively greater stability and a more moderate valuation profile. This stock fits well within GARP portfolios favoring consistent cash generation with controlled risk.
If you prioritize dynamic value creation and expanding profitability, Howmet Aerospace outshines due to its accelerating returns and strong operational momentum. However, if your focus is on stable cash flow and a more conservative risk profile, Pentair offers better stability despite slower growth. Both companies create value, but your investor profile should guide which analytical scenario aligns best.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Howmet Aerospace Inc. and Pentair plc to enhance your investment decisions:
