American Water Works (AWK)vsWilliams Companies Inc (WMB)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
WMB
Williams Companies Inc
$73.76
-3.10%
ENERGY · Cap: $92.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Williams Companies Inc generates 127% more annual revenue ($11.83B vs $5.21B). WMB leads profitability with a 22.1% profit margin vs 21.2%. AWK appears more attractively valued with a PEG of 2.30. WMB earns a higher WallStSmart Score of 67/100 (B-).
AWK
Buy60
out of 100
Grade: C
WMB
Strong Buy67
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
Intrinsic value data unavailable for WMB.
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
Strong operational efficiency at 41.2%
Earnings expanding 50.8% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
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
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
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 : WMB
The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 41.2%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : WMB
The primary concerns for WMB are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
AWK carries more volatility with a beta of 0.73 — expect wider price swings.
WMB is growing revenue faster at 8.7% — sustainability is the question.
WMB generates stronger free cash flow (244M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WMB scores higher overall (67/100 vs 60/100), backed by strong 22.1% margins. 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.
Williams Companies Inc
ENERGY · OIL & GAS MIDSTREAM · USA
The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.
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