American Water Works (AWK)vsSpotify Technology SA (SPOT)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
SPOT
Spotify Technology SA
$443.57
+2.16%
COMMUNICATION SERVICES · Cap: $106.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 230% more annual revenue ($17.19B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 12.9%. SPOT appears more attractively valued with a PEG of 2.17. SPOT earns a higher WallStSmart Score of 60/100 (C+).
AWK
Buy60
out of 100
Grade: C
SPOT
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Margin of Safety
-47.4%
Fair Value
$330.58
Current Price
$443.57
$112.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 32 in profit
Earnings expanding 213.9% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 9.3x book value
Premium valuation, high expectations priced in
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 21.2% and operating margin at 33.2%.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Key Dynamics to Monitor
AWK profiles as a mature stock while SPOT is a value play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.70 — expect wider price swings.
SPOT is growing revenue faster at 6.8% — sustainability is the question.
SPOT generates stronger free cash flow (834M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 60/100), 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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
Compare with Other UTILITIES - REGULATED WATER Stocks
Want to dig deeper into these stocks?