WallStSmart

American Water Works (AWK)vsUniversal Corporation (UVV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 79% more annual revenue ($5.21B vs $2.91B). AWK leads profitability with a 21.2% profit margin vs 2.9%. AWK appears more attractively valued with a PEG of 2.30. AWK earns a higher WallStSmart Score of 60/100 (C).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

UVV

Hold

45

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKOvervalued (-10.7%)

Margin of Safety

-10.7%

Fair Value

$111.75

Current Price

$125.68

$13.93 premium

UndervaluedFair: $111.75Overvalued
UVVUndervalued (+33.4%)

Margin of Safety

+33.4%

Fair Value

$79.32

Current Price

$53.90

$25.42 discount

UndervaluedFair: $79.32Overvalued

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
2.3x8/10

Reasonable price relative to book value

UVV2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Areas to Watch

AWK4 concerns · Avg: 2.8/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

Free Cash FlowQuality
$-354.00M2/10

Negative free cash flow — burning cash

UVV4 concerns · Avg: 2.8/10
Market CapQuality
$1.35B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

PEG RatioValuation
3.082/10

Expensive relative to growth rate

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 : UVV

The strongest argument for UVV centers on Price/Book, P/E Ratio.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.

Bear Case : UVV

The primary concerns for UVV are Market Cap, Return on Equity, Profit Margin. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

AWK profiles as a mature stock while UVV 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.

UVV generates stronger free cash flow (95M), providing more financial flexibility.

Bottom Line

AWK scores higher overall (60/100 vs 45/100), backed by strong 21.2% margins. UVV offers better value entry with a 33.4% margin of safety. Both earn "Buy" and "Hold" 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.

Universal Corporation

CONSUMER DEFENSIVE · TOBACCO · USA

Universal Corporation processes and supplies leaf tobacco and plant ingredients worldwide. The company is headquartered in Richmond, Virginia.

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