American States Water Company (AWR)vsH2O America (HTO)
AWR
American States Water Company
$84.44
-1.22%
UTILITIES · Cap: $3.31B
HTO
H2O America
$61.80
+1.25%
UTILITIES · Cap: $2.41B
Smart Verdict
WallStSmart Research — data-driven comparison
H2O America generates 19% more annual revenue ($828.50M vs $697.48M). AWR leads profitability with a 20.5% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.68. AWR earns a higher WallStSmart Score of 68/100 (B-).
AWR
Strong Buy68
out of 100
Grade: B-
HTO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.8%
Fair Value
$65.19
Current Price
$84.44
$19.25 premium
Margin of Safety
+29.4%
Fair Value
$73.58
Current Price
$61.80
$11.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 35.8%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 25.8% YoY
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AWR
The strongest argument for AWR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% demonstrates continued momentum.
Bull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : AWR
The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-Score.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AWR profiles as a mature stock while HTO is a value play — different risk/reward profiles.
AWR carries more volatility with a beta of 0.55 — expect wider price swings.
AWR is growing revenue faster at 11.2% — sustainability is the question.
AWR generates stronger free cash flow (-4M), providing more financial flexibility.
Bottom Line
AWR scores higher overall (68/100 vs 55/100), backed by strong 20.5% margins and 11.2% revenue growth. HTO offers better value entry with a 29.4% margin of safety. 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 States Water Company
UTILITIES · UTILITIES - REGULATED WATER · USA
American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.
Visit Website →H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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