WallStSmart

American Water Works (AWK)vsVisa Inc. Class A (V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 727% more annual revenue ($43.03B vs $5.21B). V leads profitability with a 51.7% profit margin vs 21.2%. V appears more attractively valued with a PEG of 1.72. V earns a higher WallStSmart Score of 72/100 (B).

AWK

Buy

60

out of 100

Grade: C

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

V

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.84
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

Intrinsic value data unavailable for V.

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

V6 strengths · Avg: 9.3/10
Market CapQuality
$623.83B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
60.4%10/10

Every $100 of equity generates 60 in profit

Profit MarginProfitability
51.7%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
67.3%10/10

Strong operational efficiency at 67.3%

Revenue GrowthGrowth
17.1%8/10

17.1% revenue growth

EPS GrowthGrowth
35.5%8/10

Earnings expanding 35.5% YoY

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

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.724/10

Expensive relative to growth rate

P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
15.9x4/10

Trading at 15.9x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

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 : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.7% and operating margin at 67.3%. Revenue growth of 17.1% demonstrates continued momentum.

Bear Case : AWK

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

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

AWK profiles as a mature stock while V is a growth play — different risk/reward profiles.

V carries more volatility with a beta of 0.80 — expect wider price swings.

V is growing revenue faster at 17.1% — sustainability is the question.

V generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

V scores higher overall (72/100 vs 60/100), backed by strong 51.7% margins and 17.1% 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.

Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

Visit Website →

Want to dig deeper into these stocks?