American Water Works (AWK)vsAT&T Inc (T)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
T
AT&T Inc
$25.57
-1.27%
COMMUNICATION SERVICES · Cap: $181.49B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc generates 2331% more annual revenue ($126.53B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 16.9%. T appears more attractively valued with a PEG of 1.82. T earns a higher WallStSmart Score of 64/100 (C+).
AWK
Buy60
out of 100
Grade: C
T
Buy64
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
+20.5%
Fair Value
$32.17
Current Price
$25.57
$6.60 discount
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
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
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
2.9% revenue growth
Earnings declined 11.3%
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 : T
The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : T
The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
AWK profiles as a mature stock while T is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.73 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Bottom Line
T scores higher overall (64/100 vs 60/100), backed by strong 16.9% 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.
AT&T Inc
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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