Financial Analysis: Palladyne AI (NASDAQ:STRCW) vs. Zurn Elkay Water Solutions (NYSE:ZWS)

Palladyne AI (NASDAQ:STRCW) and Zurn Elkay Water Solutions (NYSE:ZWS) are both manufacturing companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Palladyne AI and Zurn Elkay Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palladyne AI	N/A	N/A	N/A
Zurn Elkay Water Solutions	8.80%	12.82%	7.61%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Palladyne AI and Zurn Elkay Water Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palladyne AI	0	0	0	0	N/A
Zurn Elkay Water Solutions	0	4	3	0	2.43

Zurn Elkay Water Solutions has a consensus target price of $35.17, indicating a potential upside of 12.21%. Given Zurn Elkay Water Solutions’ higher possible upside, analysts plainly believe Zurn Elkay Water Solutions is more favorable than Palladyne AI.

Institutional & Insider Ownership

83.3% of Zurn Elkay Water Solutions shares are owned by institutional investors. 3.8% of Zurn Elkay Water Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Palladyne AI and Zurn Elkay Water Solutions’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palladyne AI	N/A	N/A	N/A	N/A	N/A
Zurn Elkay Water Solutions	$1.54 billion	3.51	$112.70 million	$0.71	44.14

Zurn Elkay Water Solutions has higher revenue and earnings than Palladyne AI.

Summary

Zurn Elkay Water Solutions beats Palladyne AI on 8 of the 8 factors compared between the two stocks.

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.

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.