H2O America (HTO)vsStem Inc (STEM)
HTO
H2O America
$57.67
-2.68%
UTILITIES · Cap: $2.41B
STEM
Stem Inc
$10.70
+3.48%
UTILITIES · Cap: $96.73M
Smart Verdict
WallStSmart Research — data-driven comparison
H2O America generates 422% more annual revenue ($816.28M vs $156.27M). STEM leads profitability with a 88.2% profit margin vs 12.9%. HTO earns a higher WallStSmart Score of 57/100 (C).
HTO
Buy57
out of 100
Grade: C
STEM
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.7%
Fair Value
$77.24
Current Price
$57.67
$19.57 discount
Margin of Safety
+77.9%
Fair Value
$52.09
Current Price
$10.70
$41.39 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Keeps 88 of every $100 in revenue as profit
Areas to Watch
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -5921.0% — below average capital efficiency
Revenue declined 15.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : STEM
The strongest argument for STEM centers on Profit Margin. Profitability is solid with margins at 88.2% and operating margin at 8.3%.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : STEM
The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
HTO profiles as a value stock while STEM is a declining play — different risk/reward profiles.
STEM carries more volatility with a beta of 1.41 — expect wider price swings.
HTO is growing revenue faster at 9.4% — sustainability is the question.
STEM generates stronger free cash flow (7M), providing more financial flexibility.
Bottom Line
HTO scores higher overall (57/100 vs 44/100). STEM offers better value entry with a 77.9% margin of safety. 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.
Stem Inc
UTILITIES · UTILITIES - RENEWABLE · USA
Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.
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