H2O America (HTO)vsPure Cycle Corporation (PCYO)
HTO
H2O America
$56.72
+0.48%
UTILITIES · Cap: $2.37B
PCYO
Pure Cycle Corporation
$9.88
-1.40%
UTILITIES · Cap: $249.10M
Smart Verdict
WallStSmart Research — data-driven comparison
H2O America generates 2617% more annual revenue ($800.59M vs $29.47M). PCYO leads profitability with a 46.6% profit margin vs 12.8%. PCYO trades at a lower P/E of 18.1x. PCYO earns a higher WallStSmart Score of 61/100 (C+).
HTO
Hold49
out of 100
Grade: D+
PCYO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-161.7%
Fair Value
$19.86
Current Price
$56.72
$36.86 premium
Margin of Safety
+49.0%
Fair Value
$20.75
Current Price
$9.88
$10.87 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 48.0%
Revenue surging 58.8% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
ROE of 7.1% — below average capital efficiency
Revenue declined 1.8%
Earnings declined 34.4%
Smaller company, higher risk/reward
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book.
Bull Case : PCYO
The strongest argument for PCYO centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.6% and operating margin at 48.0%. Revenue growth of 58.8% demonstrates continued momentum.
Bear Case : HTO
The primary concerns for HTO are PEG Ratio, Return on Equity, Revenue Growth.
Bear Case : PCYO
The primary concerns for PCYO are Market Cap, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
HTO profiles as a declining stock while PCYO is a growth play — different risk/reward profiles.
PCYO carries more volatility with a beta of 1.32 — expect wider price swings.
PCYO is growing revenue faster at 58.8% — sustainability is the question.
PCYO generates stronger free cash flow (-1M), providing more financial flexibility.
Bottom Line
PCYO scores higher overall (61/100 vs 49/100), backed by strong 46.6% margins and 58.8% revenue growth. Both earn "Buy" and "Hold" 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.
Pure Cycle Corporation
UTILITIES · UTILITIES - REGULATED WATER · USA
Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.
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