WallStSmart

American States Water Company (AWR)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 381% more annual revenue ($3.17B vs $658.07M). WAT leads profitability with a 20.3% profit margin vs 19.8%. WAT appears more attractively valued with a PEG of 1.34. WAT earns a higher WallStSmart Score of 60/100 (C).

AWR

Buy

56

out of 100

Grade: C

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

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.7Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.58

Current Price

$75.84

$7.26 premium

UndervaluedFair: $68.58Overvalued

Intrinsic value data unavailable for WAT.

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%

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 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
2.712/10

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

WAT3 concerns · Avg: 3.3/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

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 : WAT

The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.34 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 : WAT

The primary concerns for WAT are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

WAT carries more volatility with a beta of 1.20 — expect wider price swings.

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

WAT generates stronger free cash flow (126M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WAT scores higher overall (60/100 vs 56/100), backed by strong 20.3% 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 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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Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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