H2O America (HTO)vsMiddlesex Water Company (MSEX)
HTO
H2O America
$62.66
+1.42%
UTILITIES · Cap: $2.57B
MSEX
Middlesex Water Company
$58.22
+1.48%
UTILITIES · Cap: $1.05B
Smart Verdict
WallStSmart Research — data-driven comparison
H2O America generates 316% more annual revenue ($828.50M vs $199.11M). MSEX leads profitability with a 22.1% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.68. MSEX earns a higher WallStSmart Score of 57/100 (C).
HTO
Buy55
out of 100
Grade: C
MSEX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.1%
Fair Value
$74.38
Current Price
$62.66
$11.72 discount
Margin of Safety
-24.2%
Fair Value
$41.63
Current Price
$58.22
$16.59 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 29.3%
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : MSEX
The strongest argument for MSEX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 22.1% and operating margin at 29.3%.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Bear Case : MSEX
The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HTO profiles as a value stock while MSEX is a mature play — different risk/reward profiles.
MSEX carries more volatility with a beta of 0.77 — expect wider price swings.
MSEX is growing revenue faster at 10.0% — sustainability is the question.
MSEX generates stronger free cash flow (-9M), providing more financial flexibility.
Bottom Line
MSEX scores higher overall (57/100 vs 55/100), backed by strong 22.1% margins. HTO offers better value entry with a 30.1% 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.
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.
Middlesex Water Company
UTILITIES · UTILITIES - REGULATED WATER · USA
Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.
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