WallStSmart

American Water Works (AWK)vsConsolidated Water Co Ltd (CWCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 3792% more annual revenue ($5.14B vs $132.07M). AWK leads profitability with a 21.6% profit margin vs 13.9%. CWCO appears more attractively valued with a PEG of 2.25. AWK earns a higher WallStSmart Score of 62/100 (C+).

AWK

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

CWCO

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 6.0Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-219.7%)

Margin of Safety

-219.7%

Fair Value

$38.69

Current Price

$134.59

$95.90 premium

UndervaluedFair: $38.69Overvalued
CWCOUndervalued (+31.5%)

Margin of Safety

+31.5%

Fair Value

$54.29

Current Price

$32.46

$21.83 discount

UndervaluedFair: $54.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

CWCO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
103.8%10/10

Earnings expanding 103.8% YoY

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

AWK4 concerns · Avg: 3.3/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-385.00M2/10

Negative free cash flow — burning cash

CWCO4 concerns · Avg: 3.8/10
PEG RatioValuation
2.254/10

Expensive relative to growth rate

P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Market CapQuality
$487.23M3/10

Smaller company, higher risk/reward

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 21.6% and operating margin at 32.2%.

Bull Case : CWCO

The strongest argument for CWCO centers on EPS Growth, Price/Book.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, EPS Growth, Piotroski F-Score.

Bear Case : CWCO

The primary concerns for CWCO are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

AWK profiles as a mature stock while CWCO is a value play — different risk/reward profiles.

AWK carries more volatility with a beta of 0.76 — expect wider price swings.

AWK is growing revenue faster at 5.8% — sustainability is the question.

CWCO generates stronger free cash flow (3M), providing more financial flexibility.

Bottom Line

AWK scores higher overall (62/100 vs 52/100), backed by strong 21.6% margins. CWCO offers better value entry with a 31.5% margin of safety. 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.

Consolidated Water Co Ltd

UTILITIES · UTILITIES - REGULATED WATER · USA

Consolidated Water Co. Ltd. designs, builds, manages and operates water treatment and production plants primarily in the Cayman Islands, the Bahamas and the United States. The company is headquartered in Grand Cayman, the Cayman Islands.

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