Critical Review: Zurn Elkay Water Solutions (NYSE:ZWS) and Revolution Acceleration Acquisition (OTCMKTS:RAACU)

Zurn Elkay Water Solutions (NYSE:ZWS) and Revolution Acceleration Acquisition (OTCMKTS:RAACU) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Earnings and Valuation

This table compares Zurn Elkay Water Solutions and Revolution Acceleration Acquisition”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zurn Elkay Water Solutions	$1.53 billion	3.77	$112.70 million	$0.71	47.61
Revolution Acceleration Acquisition	N/A	N/A	N/A	N/A	N/A

Zurn Elkay Water Solutions has higher revenue and earnings than Revolution Acceleration Acquisition.

Analyst Ratings

This is a summary of recent ratings and target prices for Zurn Elkay Water Solutions and Revolution Acceleration Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zurn Elkay Water Solutions	0	4	3	0	2.43
Revolution Acceleration Acquisition	0	0	0	0	N/A

Zurn Elkay Water Solutions presently has a consensus target price of $35.17, indicating a potential upside of 4.04%. Given Zurn Elkay Water Solutions’ higher possible upside, equities analysts plainly believe Zurn Elkay Water Solutions is more favorable than Revolution Acceleration Acquisition.

Institutional & Insider Ownership

83.3% of Zurn Elkay Water Solutions shares are held by institutional investors. 3.8% of Zurn Elkay Water Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Zurn Elkay Water Solutions and Revolution Acceleration Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zurn Elkay Water Solutions	8.80%	12.82%	7.61%
Revolution Acceleration Acquisition	N/A	N/A	N/A

Summary

Zurn Elkay Water Solutions beats Revolution Acceleration Acquisition on 8 of the 8 factors compared between the two stocks.

About Zurn Elkay Water Solutions

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, thermostatic mixing valves, PEX pipings, fittings, and installation tools under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, chemical drainage systems; and interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn and Green Turtle brands. In addition, it develops, manufactures, and markets remote tank monitoring devices, alarms, software, and services. Further, the company offers sensor-operated flush valves under the AquaSense, Aquaflush, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks and plumbing fixtures, and various types of sinks, as well as drinking water dispensing and filtration products under the Elkay and Halsey Taylor brands. It distributes to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was incorporated in 1892 and is headquartered in Milwaukee, Wisconsin.

About Revolution Acceleration Acquisition

Revolution Acceleration Acquisition Corp does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was formerly known as Acceleration Acquisition Corporation and changed its name to Revolution Acceleration Acquisition Corp in November 2020. Revolution Acceleration Acquisition Corp was incorporated in 2020 and is based in Washington, District of Columbia.