WallStSmart

American Water Works (AWK)vsNational Grid PLC ADR (NGG)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

National Grid PLC ADR generates 235% more annual revenue ($17.69B vs $5.28B). AWK leads profitability with a 21.3% profit margin vs 18.3%. NGG appears more attractively valued with a PEG of 2.15. AWK earns a higher WallStSmart Score of 64/100 (C+).

AWK

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59

NGG

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 5.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$101.28

Current Price

$146.42

$45.14 premium

UndervaluedFair: $101.28Overvalued

Intrinsic value data unavailable for NGG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Profit MarginProfitability
21.3%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

NGG2 strengths · Avg: 9.5/10
Operating MarginProfitability
32.6%10/10

Strong operational efficiency at 32.6%

Market CapQuality
$84.40B9/10

Large-cap with strong market position

Areas to Watch

AWK4 concerns · Avg: 3.0/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-258.00M2/10

Negative free cash flow — burning cash

NGG4 concerns · Avg: 3.8/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Price/BookValuation
9.6x4/10

Trading at 9.6x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Debt/EquityHealth
1.193/10

Elevated debt levels

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 21.3% and operating margin at 40.7%.

Bull Case : NGG

The strongest argument for NGG centers on Operating Margin, Market Cap. Profitability is solid with margins at 18.3% and operating margin at 32.6%.

Bear Case : AWK

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

Bear Case : NGG

The primary concerns for NGG are PEG Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

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

NGG carries more volatility with a beta of 0.58 — expect wider price swings.

AWK is growing revenue faster at 6.2% — sustainability is the question.

AWK generates stronger free cash flow (-258M), providing more financial flexibility.

Bottom Line

AWK scores higher overall (64/100 vs 56/100), backed by strong 21.3% margins. 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.

National Grid PLC ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

National Grid plc transmits and distributes electricity and natural gas. The company is headquartered in London, the United Kingdom.

Visit Website →

Want to dig deeper into these stocks?