WallStSmart

California Water Service Group (CWT)vsH2O America (HTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 24% more annual revenue ($1.01B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs 11.8%. CWT appears more attractively valued with a PEG of 1.96. HTO earns a higher WallStSmart Score of 57/100 (C).

CWT

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.7Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+30.3%)

Margin of Safety

+30.3%

Fair Value

$63.31

Current Price

$43.47

$19.84 discount

UndervaluedFair: $63.31Overvalued
HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.97

$19.02 discount

UndervaluedFair: $76.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

EPS GrowthGrowth
-69.3%2/10

Earnings declined 69.3%

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

CWT carries more volatility with a beta of 0.50 — expect wider price swings.

HTO is growing revenue faster at 9.4% — sustainability is the question.

HTO generates stronger free cash flow (-49M), providing more financial flexibility.

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

Bottom Line

HTO scores higher overall (57/100 vs 53/100). CWT offers better value entry with a 30.3% 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.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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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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