American Water Works (AWK)vsPure Cycle Corporation (PCYO)
AWK
American Water Works
$134.59
+0.76%
UTILITIES · Cap: $26.08B
PCYO
Pure Cycle Corporation
$9.88
-1.40%
UTILITIES · Cap: $249.10M
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 17341% more annual revenue ($5.14B vs $29.47M). PCYO leads profitability with a 46.6% profit margin vs 21.6%. PCYO trades at a lower P/E of 18.1x. AWK earns a higher WallStSmart Score of 62/100 (C+).
AWK
Buy62
out of 100
Grade: C+
PCYO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-219.7%
Fair Value
$38.69
Current Price
$134.59
$95.90 premium
Margin of Safety
+49.0%
Fair Value
$20.75
Current Price
$9.88
$10.87 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.2%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 48.0%
Revenue surging 58.8% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Negative free cash flow — burning cash
Smaller company, higher risk/reward
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : PCYO
The strongest argument for PCYO centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.6% and operating margin at 48.0%. Revenue growth of 58.8% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, EPS Growth, 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 1.32 — expect wider price swings.
PCYO is growing revenue faster at 58.8% — sustainability is the question.
PCYO generates stronger free cash flow (-1M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (62/100 vs 61/100), backed by strong 21.6% margins. PCYO offers better value entry with a 49.0% 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.
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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