American Water Works (AWK)vsUbiquiti Networks Inc (UI)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
UI
Ubiquiti Networks Inc
$1,028.31
+1.32%
TECHNOLOGY · Cap: $61.72B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 75% more annual revenue ($5.21B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 21.2%. UI appears more attractively valued with a PEG of 1.10. UI earns a higher WallStSmart Score of 71/100 (B).
AWK
Buy60
out of 100
Grade: C
UI
Strong Buy71
out of 100
Grade: B
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
-85.1%
Fair Value
$385.30
Current Price
$1028.31
$643.01 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 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 61.2x book value
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 : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 69.5x leaves little room for execution misses.
Key Dynamics to Monitor
AWK profiles as a mature stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.32 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
UI generates stronger free cash flow (259M), providing more financial flexibility.
Bottom Line
UI scores higher overall (71/100 vs 60/100), backed by strong 29.9% margins and 35.8% 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.
Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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