WallStSmart

H2O America (HTO)vsMiddlesex Water Company (MSEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H2O America generates 310% more annual revenue ($816.28M vs $199.11M). MSEX leads profitability with a 22.1% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.55. MSEX earns a higher WallStSmart Score of 59/100 (C).

HTO

Buy

57

out of 100

Grade: C

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

MSEX

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 4.0Quality: 3.0
Piotroski: 1/9Altman Z: 0.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.97

$19.02 discount

UndervaluedFair: $76.99Overvalued
MSEXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$45.83

Current Price

$51.56

$5.73 premium

UndervaluedFair: $45.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

MSEX3 strengths · Avg: 8.3/10
Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

Areas to Watch

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

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$948.54M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-8.91M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 EPS Growth, Return on Equity, PEG Ratio.

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 0.78 — 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 (59/100 vs 57/100), backed by strong 22.1% margins. HTO offers better value entry with a 32.5% 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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