WallStSmart

American Water Works (AWK)vsAmerican States Water Company (AWR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 666% more annual revenue ($5.21B vs $679.25M). AWK leads profitability with a 21.2% profit margin vs 19.7%. AWK appears more attractively valued with a PEG of 2.28. AWR earns a higher WallStSmart Score of 62/100 (C+).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59

AWR

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-22.5%)

Margin of Safety

-22.5%

Fair Value

$101.00

Current Price

$124.47

$23.47 premium

UndervaluedFair: $101.00Overvalued
AWROvervalued (-11.2%)

Margin of Safety

-11.2%

Fair Value

$63.81

Current Price

$77.66

$13.85 premium

UndervaluedFair: $63.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

AWR2 strengths · Avg: 9.0/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

AWK4 concerns · Avg: 3.0/10
PEG RatioValuation
2.284/10

Expensive relative to growth rate

Debt/EquityHealth
1.423/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

AWR2 concerns · Avg: 2.0/10
PEG RatioValuation
2.802/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AWK

The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Price/Book. Profitability is solid with margins at 19.7% and operating margin at 30.9%. Revenue growth of 14.3% demonstrates continued momentum.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

AWK carries more volatility with a beta of 0.61 — expect wider price swings.

AWR is growing revenue faster at 14.3% — sustainability is the question.

AWR generates stronger free cash flow (23M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AWR scores higher overall (62/100 vs 60/100), backed by strong 19.7% margins and 14.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Water Works

UTILITIES · UTILITIES - REGULATED WATER · USA

American Water is an American public utility company operating in the United States and Canada.

American States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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