WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 3956% more annual revenue ($5.21B vs $128.33M). AWK leads profitability with a 21.2% profit margin vs 13.5%. AWK appears more attractively valued with a PEG of 2.28. AWK earns a higher WallStSmart Score of 60/100 (C).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.58

CWCO

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 6.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-22.5%)

Margin of Safety

-22.5%

Fair Value

$100.98

Current Price

$124.47

$23.49 premium

UndervaluedFair: $100.98Overvalued
CWCOOvervalued (-14.5%)

Margin of Safety

-14.5%

Fair Value

$32.51

Current Price

$29.92

$2.59 premium

UndervaluedFair: $32.51Overvalued

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

CWCO3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

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%

CWCO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

P/E RatioValuation
27.6x4/10

Moderate valuation

Market CapQuality
$480.97M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : CWCO

The strongest argument for CWCO centers on Debt/Equity, Altman Z-Score, Price/Book.

Bear Case : AWK

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

Bear Case : CWCO

The primary concerns for CWCO are PEG Ratio, P/E Ratio, Market Cap.

Key Dynamics to Monitor

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

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

AWK is growing revenue faster at 5.7% — sustainability is the question.

CWCO generates stronger free cash flow (5M), providing more financial flexibility.

Bottom Line

AWK scores higher overall (60/100 vs 42/100), backed by strong 21.2% margins. Both earn "Buy" and "Hold" 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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