WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 15333% more annual revenue ($5.21B vs $33.73M). PCYO leads profitability with a 43.7% profit margin vs 21.2%. PCYO trades at a lower P/E of 17.6x. PCYO earns a higher WallStSmart Score of 68/100 (B-).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 3.3Quality: 3.8
Piotroski: 3/9Altman Z: 0.59

PCYO

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 6.0Quality: 7.5
Piotroski: 3/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-22.3%)

Margin of Safety

-22.3%

Fair Value

$101.14

Current Price

$138.09

$36.95 premium

UndervaluedFair: $101.14Overvalued

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
2.4x8/10

Reasonable price relative to book value

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
43.7%10/10

Keeps 44 of every $100 in revenue as profit

Revenue GrowthGrowth
60.0%10/10

Revenue surging 60.0% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

AWK4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

PCYO2 concerns · Avg: 3.0/10
Market CapQuality
$259.29M3/10

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 : PCYO

The strongest argument for PCYO centers on Profit Margin, Revenue Growth, Debt/Equity. Profitability is solid with margins at 43.7% and operating margin at 25.7%. Revenue growth of 60.0% demonstrates continued momentum.

Bear Case : AWK

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

Bear Case : PCYO

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

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 1.23 — expect wider price swings.

PCYO is growing revenue faster at 60.0% — sustainability is the question.

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

Bottom Line

PCYO scores higher overall (68/100 vs 60/100), backed by strong 43.7% margins and 60.0% revenue growth. Both earn "Strong 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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