American Water Works (AWK)vsEssential Utilities Inc (WTRG)
AWK
American Water Works
$139.79
-0.93%
UTILITIES · Cap: $26.82B
WTRG
Essential Utilities Inc
$42.27
-0.87%
UTILITIES · Cap: $11.17B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 106% more annual revenue ($5.28B vs $2.57B). WTRG leads profitability with a 21.6% profit margin vs 21.3%. AWK appears more attractively valued with a PEG of 2.36. AWK earns a higher WallStSmart Score of 64/100 (C+).
AWK
Buy64
out of 100
Grade: C+
WTRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.1%
Fair Value
$101.28
Current Price
$139.79
$38.51 premium
Margin of Safety
+44.8%
Fair Value
$67.77
Current Price
$42.27
$25.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
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 21.3% and operating margin at 40.7%.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AWK profiles as a mature stock while WTRG is a value play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.63 — expect wider price swings.
AWK is growing revenue faster at 6.2% — sustainability is the question.
WTRG generates stronger free cash flow (-51M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (64/100 vs 56/100), backed by strong 21.3% margins. WTRG offers better value entry with a 44.8% 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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