WallStSmart

California Water Service Group (CWT)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 153% more annual revenue ($2.55B vs $1.01B). WTRG leads profitability with a 21.8% profit margin vs 11.8%. CWT appears more attractively valued with a PEG of 1.96. WTRG earns a higher WallStSmart Score of 60/100 (C+).

CWT

Buy

53

out of 100

Grade: C-

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

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
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
WTRGUndervalued (+48.9%)

Margin of Safety

+48.9%

Fair Value

$73.19

Current Price

$37.47

$35.72 discount

UndervaluedFair: $73.19Overvalued

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

WTRG4 strengths · Avg: 8.8/10
Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

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%

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-23.3%2/10

Earnings declined 23.3%

Free Cash FlowQuality
$-240.78M2/10

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 : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 21.8% and operating margin at 36.0%.

Bear Case : CWT

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

Bear Case : WTRG

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

Key Dynamics to Monitor

CWT profiles as a value stock while WTRG is a mature play — different risk/reward profiles.

WTRG carries more volatility with a beta of 0.66 — expect wider price swings.

WTRG is growing revenue faster at 10.0% — sustainability is the question.

CWT generates stronger free cash flow (-80M), providing more financial flexibility.

Bottom Line

WTRG scores higher overall (60/100 vs 53/100), backed by strong 21.8% margins. 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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Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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