WallStSmart

American Water Works (AWK)vsPure Cycle Corporation (PCYO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 16885% more annual revenue ($5.21B vs $30.64M). PCYO leads profitability with a 45.8% profit margin vs 21.2%. PCYO trades at a lower P/E of 18.3x. 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

PCYO

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 5.3Quality: 7.0
Piotroski: 3/9Altman Z: 4.77
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

Intrinsic value data unavailable for PCYO.

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

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
45.8%10/10

Keeps 46 of every $100 in revenue as profit

EPS GrowthGrowth
52.8%10/10

Earnings expanding 52.8% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

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%

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$255.74M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.51M2/10

Negative free cash flow — burning cash

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 : PCYO

The strongest argument for PCYO centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 45.8% and operating margin at 5.1%. Revenue growth of 29.4% demonstrates continued momentum.

Bear Case : AWK

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

Bear Case : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

AWK profiles as a mature stock while PCYO is a growth play — different risk/reward profiles.

PCYO carries more volatility with a beta of 1.24 — expect wider price swings.

PCYO is growing revenue faster at 29.4% — sustainability is the question.

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

Bottom Line

AWK scores higher overall (60/100 vs 55/100), backed by strong 21.2% 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.

Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

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