American Water Works (AWK)vsWarner Bros Discovery Inc (WBD)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
WBD
Warner Bros Discovery Inc
$27.20
-0.07%
COMMUNICATION SERVICES · Cap: $67.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 617% more annual revenue ($37.30B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 1.9%. AWK appears more attractively valued with a PEG of 2.30. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
WBD
Buy51
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
+60.6%
Fair Value
$71.09
Current Price
$27.20
$43.89 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
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B 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
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 93.0x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
AWK profiles as a mature stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.64 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
WBD generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 51/100), backed by strong 21.2% margins. WBD offers better value entry with a 60.6% margin of safety. 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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