WallStSmart

American States Water Company (AWR)vsStem Inc (STEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American States Water Company generates 321% more annual revenue ($658.07M vs $156.27M). STEM leads profitability with a 88.2% profit margin vs 19.8%. AWR 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

STEM

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 6.7Quality: 5.0
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
STEMUndervalued (+77.9%)

Margin of Safety

+77.9%

Fair Value

$52.09

Current Price

$10.70

$41.39 discount

UndervaluedFair: $52.09Overvalued

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%

STEM1 strengths · Avg: 10.0/10
Profit MarginProfitability
88.2%10/10

Keeps 88 of every $100 in revenue as profit

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

STEM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$96.73M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5921.0%2/10

ROE of -5921.0% — below average capital efficiency

Revenue GrowthGrowth
-15.6%2/10

Revenue declined 15.6%

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 : STEM

The strongest argument for STEM centers on Profit Margin. Profitability is solid with margins at 88.2% and operating margin at 8.3%.

Bear Case : AWR

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

Bear Case : STEM

The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

STEM carries more volatility with a beta of 1.41 — expect wider price swings.

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

STEM generates stronger free cash flow (7M), providing more financial flexibility.

Bottom Line

AWR scores higher overall (56/100 vs 44/100), backed by strong 19.8% margins and 14.8% revenue growth. STEM offers better value entry with a 77.9% margin of safety. Both earn "Buy" and "Hold" 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 →

Stem Inc

UTILITIES · UTILITIES - RENEWABLE · USA

Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.

Want to dig deeper into these stocks?