American Water Works (AWK)vsEssential Utilities Inc (WTRG)
AWK
American Water Works
$125.05
-0.91%
UTILITIES · Cap: $24.64B
WTRG
Essential Utilities Inc
$37.47
-0.61%
UTILITIES · Cap: $10.68B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 104% more annual revenue ($5.21B vs $2.55B). WTRG leads profitability with a 21.8% profit margin vs 21.2%. AWK appears more attractively valued with a PEG of 2.28. WTRG earns a higher WallStSmart Score of 60/100 (C+).
AWK
Buy60
out of 100
Grade: C
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.77
Current Price
$125.05
$13.28 premium
Margin of Safety
+48.9%
Fair Value
$73.19
Current Price
$37.47
$35.72 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
Strong operational efficiency at 36.0%
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 23.3%
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 21.2% and operating margin at 33.2%.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 21.8% and operating margin at 36.0%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
WTRG carries more volatility with a beta of 0.66 — expect wider price swings.
WTRG is growing revenue faster at 10.0% — sustainability is the question.
WTRG generates stronger free cash flow (-241M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AWK scores higher overall (60/100 vs 60/100), backed by strong 21.2% margins. WTRG offers better value entry with a 48.9% 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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