Head to Head Analysis: Revolution Acceleration Acquisition (OTCMKTS:RAACU) versus Zurn Elkay Water Solutions (NYSE:ZWS)

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

Insider & Institutional 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 stock will outperform the market over the long term.

Profitability

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

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

Earnings & Valuation

This table compares Revolution Acceleration Acquisition and Zurn Elkay Water Solutions’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Acceleration Acquisition	N/A	N/A	N/A	N/A	N/A
Zurn Elkay Water Solutions	$1.54 billion	3.33	$112.70 million	$0.71	41.85

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Revolution Acceleration Acquisition and Zurn Elkay Water Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Acceleration Acquisition	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, suggesting a potential upside of 18.37%. Given Zurn Elkay Water Solutions’ higher possible upside, analysts clearly believe Zurn Elkay Water Solutions is more favorable than Revolution Acceleration Acquisition.

Summary

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

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.

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.