American Water Works (AWK)vsEssential Utilities Inc (WTRG)
AWK
American Water Works
$134.59
+0.76%
UTILITIES · Cap: $26.08B
WTRG
Essential Utilities Inc
$39.65
-0.13%
UTILITIES · Cap: $11.25B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 108% more annual revenue ($5.14B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 21.6%. AWK appears more attractively valued with a PEG of 2.45. AWK earns a higher WallStSmart Score of 62/100 (C+).
AWK
Buy62
out of 100
Grade: C+
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-219.7%
Fair Value
$38.69
Current Price
$134.59
$95.90 premium
Margin of Safety
-150.3%
Fair Value
$14.96
Current Price
$39.65
$24.69 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.2%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
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 21.6% and operating margin at 32.2%.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, EPS Growth, Piotroski F-Score.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
AWK profiles as a mature stock while WTRG is a growth play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.80 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
WTRG generates stronger free cash flow (-241M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (62/100 vs 60/100), backed by strong 21.6% margins. 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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