WallStSmart

American States Water Company (AWR)vsSempra Energy (SRE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sempra Energy generates 1982% more annual revenue ($13.70B vs $658.07M). AWR leads profitability with a 19.8% profit margin vs 13.4%. SRE appears more attractively valued with a PEG of 0.83. SRE earns a higher WallStSmart Score of 56/100 (C).

AWR

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.17

SRE

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 6.0Value: 4.7Quality: 4.3
Piotroski: 3/9Altman Z: 0.87
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.55

Current Price

$75.29

$6.74 premium

UndervaluedFair: $68.55Overvalued
SRESignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$69.13

Current Price

$95.12

$25.99 premium

UndervaluedFair: $69.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.8%8/10

Strong operational efficiency at 28.8%

SRE4 strengths · Avg: 8.3/10
Market CapQuality
$62.14B9/10

Large-cap with strong market position

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

Areas to Watch

AWR4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.862/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.2%2/10

Earnings declined 1.2%

Free Cash FlowQuality
$-35.98M2/10

Negative free cash flow — burning cash

SRE4 concerns · Avg: 3.0/10
P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.2%2/10

Revenue declined 0.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.8% and operating margin at 28.8%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : SRE

The strongest argument for SRE centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bear Case : AWR

The primary concerns for AWR are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : SRE

The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

AWR profiles as a mature stock while SRE is a declining play — different risk/reward profiles.

SRE carries more volatility with a beta of 0.68 — expect wider price swings.

AWR is growing revenue faster at 14.8% — sustainability is the question.

AWR generates stronger free cash flow (-36M), providing more financial flexibility.

Bottom Line

AWR scores higher overall (56/100 vs 56/100), backed by strong 19.8% margins and 14.8% revenue growth. 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 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.

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Sempra Energy

UTILITIES · UTILITIES - DIVERSIFIED · USA

Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.

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